Metaplanet gains edge from weak yen in Bitcoin treasury race

Japanese bitcoin treasury firm Metaplanet may hold a structural advantage over US-based peers due to sustained weakness in the yen.

Analyst Adam Livingston said Japan’s debt-to-GDP ratio near 250% continues to erode the value of the yen.

Persistent currency debasement has made the yen a preferred funding tool for leveraged macro strategies.

Bitcoin has risen about 1,159% against the US dollar since 2020 but gained roughly 1,704% when measured in yen terms.

Livingston said Metaplanet’s liabilities are denominated in a currency that weakens faster than the dollar.

Every coupon Metaplanet pays is in a currency that has been losing value relative to both BTC and USD.

Adam Livingston said.

He added that the real bitcoin-denominated cost of Metaplanet’s 4.9% coupon continues to shrink over time.

By contrast, US-based Strategy pays a 10% coupon in dollars, which erodes more slowly.

The analysis comes as crypto treasury companies struggle following the October market crash.

Several digital asset treasury firms have fallen more than 90% from their peak valuations.

Metaplanet currently holds 35,102 bitcoin, ranking it as the fourth-largest bitcoin treasury company.

The company recently purchased 4,279 bitcoin for approximately $451 million.

Despite accumulation, Metaplanet’s share price has declined alongside the broader treasury sector.

At the time of reporting, Bitcoin price was $92,837.83.