Bitcoin (BTC) treasury firm Metaplanet may have a financial advantage over other digital asset treasury firms due to the structural weakness of the Japanese yen (JPY), said Adam Livingston, a BTC analyst and crypto treasury firm investor.
Livingston said Japan’s debt-to-gross domestic product (GDP) ratio is about 250%. This high level of debt continues to weaken the yen, forcing the country to print more yen each year to cover the deficit, further increasing debt levels and reducing the value of the yen.
He said that when measured in USD terms, BTC has appreciated approximately 1,159% since 2020, while when measured against the Japanese Yen, BTC has appreciated 1,704% over the same period.
Livingstone said the weaker yen means Metaplanet’s debt is denominated in fiat currencies that are cheaper than the dollar, making it cheaper for the company to finance “per unit of fiat currency” it spends. He added:
“Every coupon paid by Metaplanet is paid in a currency that is depreciating in value relative to both BTC and USD, so the real cost in BTC of its 4.9% coupon continues to shrink. As the strategy pays its 10% coupon in the stronger unit of dollars, the reduction in its debt is occurring more slowly.”
The analysis comes amid a broader downturn for crypto treasury firms, as crypto markets struggle to regain momentum and hit new all-time highs after October’s historic crash, with some companies losing more than 90% of their peak value.
Related: Metaplanet clears issue of dividend-paying stocks to overseas institutions
Metaplanet becomes 4th largest BTC treasury company despite significant DAT drop
As of this writing, Metaplanet holds 35,102 BTC in reserve. This makes Metaplanet the fourth-largest Bitcoin treasury company by BTC holdings, according to data from BitcoinTreasuries.
The company’s most recent BTC purchase took place on Tuesday, when it purchased 4,279 BTC for approximately $451 million.
However, despite accumulating large amounts of BTC, the company’s stock price has fallen in line with other crypto treasury sectors, including the largest BTC treasury players, Strategy, BitMine, nakamoto, and others.
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