This Episode provide a detailed financial and structural analysis of Strategy Inc.'s STRC preferred stock, confirming that its security is derived from its senior position in the capital structure, not a legal lien on Bitcoin. A quantitative stress test demonstrates that STRC principal is protected up to an 82.8% Bitcoin drawdown due to a large cushion of junior equity, making the company's 80% claim conservative. The sources also explain that the company avoids realizing taxable gains by adhering to its "never sell Bitcoin" strategy, which allows STRC cash distributions to be treated as a tax-deferred Return of Capital for investors. Finally, the analysis explains that the stability of STRC is achieved by concentrating risk and volatility onto the common stock (MSTR), which effectively functions as a highly leveraged call option on Bitcoin.