Ripple CEO Brad Garlinghouse remains bullish on Bitcoin, saying the current market environment is a time to be greedy despite prevailing fear, while arguing that Strategy’s capital-raising strategy has negatively impacted the crypto market.

In a CNBC interview, Garlinghouse said Strategy’s use of leverage fueled Bitcoin’s rise as each successful capital raise allowed the company to accumulate more Bitcoin, reinforcing the bullish momentum. 

However, that same feedback loop works in reverse as conditions deteriorate, amplifying downside pressure.

“I think because they were using leverage… Michael Saylor would characterize it differently than leverage per se. But at the end of the day, it was leverage. And then you start to see that in a place that can actually compound negatively,” Garlinghouse said.

Strategy’s perpetual preferred stock, STRC, also known as Stretch, has traded below its $100 par value since mid-May.

The income-focused security, which pays a variable cash dividend, closed Friday down about 1.5% at $74.50, leaving it more than 25% below par, per Yahoo Finance.

“I think 25% below par is a pretty damning indictment,” Garlinghouse noted. “And I don’t think that’s helped the market.”

Asked whether Strategy Executive Chairman Michael Saylor should prioritize protecting the company’s preferred shares, Bitcoin, or equity, the Ripple executive said the real priority should be creating long-term value through utility, not financial engineering.

“I’m bullish on Bitcoin. I think I subscribe to the Warren Buffett expression of be fearful when others are greedy and be greedy when others are fearful. Now is the time, I think, to be greedy. But I also think, I think team Michael Saylor wasn’t focused on the right stuff, and that has hurt the overall market,” Garlinghouse said.

On the utility of Bitcoin, the crypto entrepreneur sees Bitcoin’s utility as digital gold, while Ripple is focused on using XRP to modernize institutional payments and bring traditional finance onto the blockchain infrastructure.