“Days to Cover mNAV” Emerges as Key Indicator for Evaluating Bitcoin-Stacking Public Companies
As bitcoin (BTC) solidifies its role as an institutional asset, more public companies are adding BTC to their treasuries, drawing investor attention to leveraged bitcoin equities (LBEs).
With valuations climbing rapidly, investors face a crucial question: which companies are truly backing their valuations with ongoing bitcoin accumulation, and which are overvalued based on reputation alone?
A new metric called “Days to Cover mNAV” offers clarity by measuring how long it would take a company to accumulate enough bitcoin—at its current stacking rate—to match its market capitalization relative to net asset value (mNAV).
The metric applies the formula:
Days to Cover = ln(mNAV) / ln(1 + BTC Yield),
factoring in compound growth to provide a forward-looking view of a company’s valuation sustainability.
Recent analysis from Microstrategist highlights stark differences between players: Strategy (MSTR), the sector pioneer, has an mNAV of 2.1 but a low daily BTC yield of 0.12%, resulting in a lengthy 626 days to justify its valuation through bitcoin accumulation.
In comparison, fast-growing firms like MetaPlanet (3350) and The Blockchain Group (ALTBG) deliver average daily BTC yields near 1.5%, enabling them to cover their high mNAVs of 5.08 and 9.4 within 110 and 152 days, respectively. Semler Scientific (SMLR), with an mNAV of 1.5 and a yield of 0.33%, holds its ground with 114 days to cover.
These numbers show that newer, faster accumulators are rapidly narrowing the valuation gap with established companies, attracting increased investor interest.
In a market defined by volatility and speed, Days to Cover mNAV provides a powerful, data-driven framework to distinguish between sustainable growth stories and overhyped names in the bitcoin equity space.
