Forward Months to Cover mNAV

Definition: The number of months needed, at the projected future rate of bitcoin generation or accumulation, for a company to close the gap between its current BTC holdings (and forward assets) and a critical target (usually mNAV = 1).

Formula: Forward Months to Cover mNAV = (Incremental BTC Needed) ÷ (Projected BTC yield per month) Incremental BTC Needed: The additional amount of BTC required for the company’s forward market Net Asset Value to reach the desired threshold (most commonly 1, denoting “full coverage” of obligations or equity). Projected BTC yield per month: The company’s expected monthly BTC production or acquisition, based on forward-looking run rates, management forecasts, or recent business trends.

Why Is FMC Important for Beginners?

Time-Based Progress Tracker: Unlike static yield percentages or asset totals, FMC gives you a real sense of when you might expect the company to achieve its bitcoin-coverage goals.

Forward Focus: By using projected (not just historical) BTC yield, FMC incorporates the company’s most current plans, outlook, and business evolution—helping you distinguish momentum from inertia.

Risk Assessment: If the number of months is especially long, it signals either a wide asset gap or sluggish growth; a shorter FMC indicates faster, more efficient BTC stack expansion.

This metric was co-developed by @RoaringRagnar (https://x.com/RoaringRagnar) and Adam Back (https://x.com/adam3us).