According to BTC analyst and investor Adam Livingston, Metaplanet, a Bitcoin (BTC) treasury firm, may possess a financial advantage over other digital asset treasury firms due to vulnerabilities in the Japanese yen (JPY).
Livingston noted that Japan’s debt-to-gross-domestic-product ratio is approximately 250%, which he stated. This substantial debt level continues to weaken the yen, necessitating printing to cover deficits each year, thereby increasing the debt further and depreciating the yen’s value.
Since 2020, BTC has increased by about 1,159% when measured in US dollars, but when measured against the Japanese yen, the increase is around 1,704%, according to him.
A depreciated yen implies that Metaplanet’s liabilities are in a fiat currency that is weaker compared to the dollar, allowing the company cheaper financing “per unit” of fiat spent, Livingston explained. He continued:
“Every coupon Metaplanet pays is in a currency that has been diminishing in value compared to both BTC and USD, so the real, BTC-adjusted cost of that 4.9% coupon keeps decreasing. Strategy pays its 10% coupon in dollars, a stronger unit, so its liability diminishes more gradually.”
This analysis emerges during a significant downturn in crypto treasury firms, many of which have seen over a 90% drop in value from their peak, as the crypto markets strive to regain traction and reach new all-time highs after a historical crash in October.
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Metaplanet ranks as the 4th largest BTC treasury company despite overall downturn in DATs
As of now, Metaplanet holds 35,102 BTC in reserves, making it the 4th largest Bitcoin treasury firm based on its BTC holdings, following data from BitcoinTreasuries.
The company’s latest BTC acquisition took place on Tuesday, when it purchased 4,279 BTC for around $451 million.
Nonetheless, despite the significant accumulation of BTC, the firm’s stock price has declined in line with the broader crypto treasury sector, which includes Strategy — the largest BTC treasury company, alongside BitMine, Nakamoto, and other firms.
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