CryptoQuant: Strategy’s Capital Pivot Is Incomplete Without BTC Trading Framework

• Strategy’s capital framework authorizes the repurchase of up to $1 billion in preferred and common shares.
• The company raised its dollar reserve from $1.44 billion to $3 billion after selling shares and cryptocurrencies.
• Total corporate treasury holdings remained unchanged at 843,775 Bitcoin.

The latest CryptoQuant report assesses that Strategy’s new capital management strategy eased its immediate liquidity strains, though it warns the plan remains incomplete. According to the analytics platform’s evaluation, the organization needs to establish specific guidelines to determine the ideal times to buy and sell the digital asset.

In late June, the company introduced a five-part digital credit capital framework. This scheme establishes a U.S. dollar reserve intended exclusively for the payment of preferred dividends and interest, setting a minimum coverage target of 12 months.

The report details that the dividend on STRC preferred shares was increased to 12% to try to bring the securities closer to 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. To complement the structure, a monetization program permits raising up to $1.25 billion through the liquidation of crypto assets.

Evaluations and Gaps in Bitcoin Management

Despite the reforms, analysts at the research firm point to the existence of unaddressed areas. According to the CryptoQuant report, the corporation has yet to define a systematic model based on market valuations that dictates when to restart asset accumulation, leaving the company exposed to acquiring funds at local price tops.

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.

The interpretation by CryptoQuant specialists suggests that these defensive actions strengthened the company’s balance sheet by doubling its dividend coverage from 14 to 29 months. However, the analytics firm maintains that the current monetization program functions only as a financial containment mechanism and lacks a proactive approach to profit-taking at market cycle highs.

The stock price of STRC shares reflected a partial recovery following the announcements, rising from historic lows of $75 to average around $88. The next milestone for the company will focus on the monthly review of its dividend rate and the potential execution of the first authorized share repurchase orders.