New 'Days to Cover' metric helps investors spot genuine Bitcoin accumulators

'Days to Cover' metric reveals how long firms take to earn market cap in BTC. Low scores signal undervalued Bitcoin plays.

The 'Days to Cover' metric, recently highlighted by Blockstream CEO Adam Back, offers a unique perspective on evaluating companies with large Bitcoin holdings.

This formula, showing how long it would take for a company to earn its market valuation in Bitcoin terms, is a powerful tool as the crypto sector matures.

The ‘Days to Cover’ metric is calculated using the formula:

Days to Cover = ln(mNAV) / ln(1 + Daily BTC Yield)

Where:

mNAV = Company’s market valuation

Daily BTC Yield = Company’s average daily Bitcoin yield over the last 3 months

This metric is applied to publicly traded companies that hold Bitcoin in their treasury. It’s designed to show how long it would take for a company to ‘cover’ its market cap by converting it to Bitcoin at the current rate.

MicroStrategist, a leading BTC analysis platform, applied this metric to the top BTC-holding public companies. They found that companies like MetaPlanet and ALTBG are stacking Bitcoin aggressively—yielding over 1.4% daily.

While MicroStrategy, despite its massive holdings of 576,230 BTC, is accumulating at a more conservative pace and remains the most institutionally trusted BTC stock.

In March, The Blockchain Group had one of the lowest ‘Days to Cover’ scores—and its stock has since surged over 834%.

As crypto investors search for fundamentally sound BTC plays, metrics like ‘Days to Cover’ are becoming crucial.

This metric offers a unique window into which companies are truly stacking sats—not just talking about it.