Woofun AI reports that CryptoQuant has classified Strategy’s new capital management strategy as incomplete, citing the absence of specific guidelines for buying and selling digital assets. While the framework addresses immediate liquidity strains, the lack of a defined protocol for asset disposition leaves the firm vulnerable to market volatility.

The five-part digital credit capital framework, introduced in late June, establishes a U.S. dollar reserve exclusively for preferred dividends and interest, with a minimum coverage target of 12 months. The dividend on STRC preferred shares was raised to 12% to align with their $100 par value.

Additionally, the plan authorizes repurchases of up to $1 billion in preferred shares and another $1 billion in MSTR common stock. A monetization program permits raising up to $1.25 billion through the liquidation of crypto assets.

A more critical variable is the unaddressed areas within this structure. The corporation has yet to define a systematic model based on market valuations that dictates when to restart asset accumulation. This omission leaves the company exposed to acquiring funds at local price tops, rather than optimizing entry and exit points.

Woofun AI data shows that between June 29 and July 5, the company finalized the sale of approximately 3,588 Bitcoin, raising an estimated $216 million. Subsequently, from July 6 to July 12, it raised $466.7 million through the issuance and sale of MSTR shares in the open market. These defensive actions strengthened the balance sheet by doubling dividend coverage from 14 to 29 months.

However, the current monetization program functions only as a financial containment mechanism, lacking a proactive approach to profit-taking at market cycle highs. STRC shares reflected a partial recovery, rising from historic lows of $75 to average around $88. The next milestone will focus on the monthly review of its dividend rate and the potential execution of the first authorized share repurchase orders.