'Days to Cover mNAV' Emerges as the Benchmark for Assessing Bitcoin-based Companies

What to Know:

MetaPlanet and ALTBG are at the forefront of the competition, transforming high BTC yields (about 1.5% daily) into short Days to Cover intervals, which justifies their high market valuations.
Despite being a leader, MSTR lags with a mere BTC yield of 0.12% and a daunting 626 days needed to cover its mNAV, suggesting a slowdown in its stacking capabilities.

As Bitcoin (BTC) grows as a legitimate institutional asset, more public firms are incorporating BTC into their treasury strategies, sparking renewed interest in leveraged bitcoin equities (LBEs).

With valuations on a steep rise, a key issue arises: which companies are genuinely backing their premiums with real BTC accumulation, and which are merely riding their reputations?

A novel metric named “Days to Cover mNAV” has emerged as a powerful tool to address this query. It gauges how long it would take a firm, at its current rate of BTC stacking, to acquire sufficient BTC to substantiate its market cap, based on its multiple of net asset value (mNAV) and its daily BTC yield.

Formula:

Days to Cover = ln(mNAV) / ln(1 + BTC Yield)

This formula accommodates compounding, offering a forward-looking, growth-adjusted perspective on a company’s valuation.

According to insights from an article by Microstrategist, the picture is quite revealing: MSTR holds an mNAV of 2.1 yet generates a paltry daily BTC yield of just 0.12%, leading to a prolonged 626 days to validate its value.

Conversely, new contenders like MetaPlanet (3350) and The Blockchain Group (ALTBG) are rapidly compounding with average BTC yields hovering near 1.5%, enabling them to uphold much greater mNAVs (5.08 and 9.4 respectively) in merely 110 and 152 days. Moreover, Semler Scientific (SMLR), with an mNAV of 1.5 and a yield of 0.33%, achieves a competitive 114 Days to Cover.

These findings, complemented by the “Days to Cover mNAV” chart from October 2024 to May 2025, indicate a distinct trend: quicker accumulators are effectively shortening their coverage timelines and closing the gap with established leaders. MetaPlanet and ALTBG, in particular, have witnessed a rise in investor confidence as they showcase their potential to convert BTC compounding into valuation enhancements.

In a sector characterized by rapid change and volatility, Days to Cover mNAV provides an insightful, data-driven perspective for evaluating long-term viability and growth potential.