mNAV Months-to-Cover Calculator

Calculate number of months to cover the mNAV premium for Bitcoin treasury companies.

Click to View Formula Explanation

How the Formula Works

This calculator estimates the time (in months) it will take for the Net Asset Value (NAV) to grow enough to cover the current premium, based on BTC yield growth.

The Formula:

t = T ×

ln(mNAV multiple) ln(BTC yield multiple)

Breakdown:

t: Months until NAV covers the premium (the result).
mNAV multiple: Enterprise value ÷ NAV (e.g. mNAV 2 means company valuation is double the Net Asset Value).
BTC yield multiple: Factor by which BTC yield grows NAV over T period (e.g. 2x, 3x).
T: Observation period in months (time of measured BTC yield).

Explanation:

The formula uses natural logarithms to model exponential growth from BTC yield, extrapolating how long it will take for NAV to match the current valuation of the company at the current rate of Bitcoin accumulation.

Example: With mNAV multiple 1.5, BTC yield multiple 2 over 12 months, it might take ~7 months.

Why this is Useful

The expected cover date shows the time frame the investor can expect the NAV to cover to valuation premium to reach an mNAV multiple of 1, effectively neutralizing the premium. Ater that point, any further growth in Bitcoin/share would directly increase valuation.

That investor can use this information to assess how that time frame aligns with their investment time horizon and risk appetite. It provides a more dynamic view of valuation, by integrating the speed of Bitcoin accretion, allowing for better-informed decisions.

Bridges valuation and fundamentals: It connects the market’s premium (mNAV multiple) directly with measurable BTC yield performance, helping investors see if price is running ahead of fundamentals or being backed up by strong treasury growth.
Comparability across companies: Investors can compare different Bitcoin treasury companies not just by premium multiples, but by how quickly those premiums could be covered under each company’s BTC accumulation rate.
Risk assessment: A very high mNAV multiple with a long Months-to-Cover horizon may signal speculative overvaluation, while a shorter horizon suggests the company’s BTC strategy is effectively supporting its valuation.