Incremental Capital Required

Incremental Capital Required is the total U.S. dollar amount a company would need—at current BTC prices—to purchase all the additional bitcoin necessary to close the gap between its present position and its target (usually mNAV = 1, meaning every share is fully backed by BTC-equivalent assets).

Formula: Incremental Capital Required = Incremental BTC Required × Current BTC Price Incremental BTC Required: The additional bitcoin needed for the company’s Forward mNAV to reach its goal, often calculated as the gap between current/forward mNAV and 1 (per share or company-wide, depending on context).

Current BTC Price: Market price per bitcoin at the time of calculation.

Why Does This Metric Matter?

Instead of presenting the shortfall in abstract terms, this metric reveals exactly how much cash a company would need to reach its BTC goal—useful for assessing fundraising needs, strategic planning, or the risk of dilution if new shares are issued.

Because price fluctuations can dramatically alter the dollar amount needed, investors can quickly see how BTC price moves will increase or decrease the cost of achieving full bitcoin asset coverage.

Knowing Incremental Capital Required lets you see which companies are closest to their BTC targets and which may face a long (and expensive) road ahead—key for benchmarking peers.