The post Bitcoin treasuries get new valuation metric — MmC appeared on BitcoinEthereumNews.com.

Adam Back has endorsed a new term to be used to value bitcoin (BTC) treasury companies like MicroStrategy, MetaPlanet, Semler Scientific, Twenty One, or Nakamoto: mNAV months-to-cover.  The term somehow forecasts the number of months it will take a company to “cover” or “make up” for its otherwise high multiple-to-net asset value (mNAV). For new readers unaccustomed to the world of public companies holding magic internet money, these companies often trade at a multiple of their so-called net assets, which are just BTC. Even though public companies don’t have a net asset value, a controlled term, Bitcoiners have colloquially appropriated the fund management acronym NAV and assume the company’s BTC equals its NAV. Moreover, they refer to the value of the company’s BTC as its NAV even if that BTC is encumbered or the company has other debts. Anyway, the formula to calculate mNAV months-to-cover — further abbreviated “MmC” — is to divide mNAV multiple by the company’s BTC yield per share. Read more: MicroStrategy wannabes and the return of mNAV mania MmC: mNAV Months-to-Cover Yield per share, expressed as a percentage like 10%, is the amount of BTC that a company adds to its NAV per year. Typically, companies adjust this yield for share dilution so that a company cannot simply sell more shares to artificially increase its yield. Assuming that a company’s mNAV and BTC yield per share will hold constant into the future — and that’s an incredible assumption — the valuation metric MmC forecasts the number of months that the company’s BTC “yield” will need to bring the mNAV down to one or equal to its BTC holdings. The problems with this metric are apparent. To seasoned readers, it should be immediately obvious that the second variable (BTC yield) is a derivative of the first variable…

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Filed under: News - @ June 4, 2025 11:24 am