Metaplanet's Strategic Advantage Amid Yen Weakness

According to Cointelegraph, Metaplanet, a Bitcoin treasury company, may have a financial advantage over other digital asset treasury firms due to the structural weakness of the Japanese yen. BTC analyst and crypto treasury investor Adam Livingston highlighted Japan's debt-to-gross-domestic-product ratio, which stands at approximately 250%. This significant debt level necessitates the printing of yen to cover deficits annually, further weakening the currency and increasing the debt burden. Livingston noted that Bitcoin has appreciated by about 1,159% in US dollar terms since 2020. However, when measured against the Japanese yen, BTC's appreciation over the same period is 1,704%. This disparity underscores the yen's depreciation relative to Bitcoin and the US dollar. For Metaplanet, this means its liabilities are in a fiat currency weaker than the dollar, providing cheaper access to financing per unit of fiat currency spent. Livingston explained that every coupon Metaplanet pays is in a currency losing value relative to both BTC and USD, reducing the real, BTC-denominated cost of its 4.9% coupon. In contrast, Strategy, another treasury company, pays its 10% coupon in dollars, a stronger currency, resulting in slower liability erosion. This analysis emerges amid a broad downturn in crypto treasury companies, with some losing over 90% of their value from peak levels as the crypto market struggles to regain momentum following a historic crash in October. Despite these challenges, Metaplanet has become the fourth-largest Bitcoin treasury company, holding 35,102 BTC in its reserves. This ranking is based on data from BitcoinTreasuries. The company's most recent acquisition occurred on Tuesday, involving the purchase of 4,279 BTC for approximately $451 million. However, despite its substantial BTC accumulation, Metaplanet's stock price has declined alongside the broader crypto treasury sector, including companies like Strategy, BitMine, and Nakamoto.