Bitcoin treasuries get new valuation metric — MmC
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 m...