Bitcoin (BTC) treasury firm Metaplanet could have a financial advantage over other digital asset treasury firms attributable to the structural weakness of the Japanese yen (JPY), in line with Adam Livingston, BTC analyst and cryptocurrency treasury firm investor.
The debt-to-gross domestic product ratio in Japan is about 250%, Livingston said. This high debt level continues to weaken the yen, which should be printed every year to cover deficits, contributing to even higher debt levels and an erosion of the yen's value.
Measured in U.S. dollars, BTC has gained about 1,159% since 2020, but measured against the Japanese yen, BTC has gained 1,704% over the identical period, he said.
Cumulative Bitcoin returns since 2020 measured in JPY are shown in orange, in comparison with BTC returns measured in USD over the identical period. Source: Adam Livingston
A weaker yen means Metaplanet's liabilities are denominated in a fiat currency that’s weaker than the dollar, giving the corporate cheaper access to financing “per unit issued” of fiat currency, Livingston said. He added:
“Every coupon Metaplanet pays is in a currency that has depreciated relative to BTC and USD, so the actual, BTC-denominated cost of that 4.9% coupon continues to say no. Strategy pays its 10% coupon in dollars, a stronger unit, so its liability erodes more slowly.”
The evaluation got here amid a broad downturn in crypto treasury corporations, a few of which lost over 90% of their value from their highs, while crypto markets struggled to regain momentum and hit latest all-time highs after a historic crash in October.
Despite the general decline in DATs, Metaplanet becomes the fourth largest BTC financial company
Metaplanet holds 35,102 BTC in its reserve on the time of writing. This makes Metaplanet the fourth largest Bitcoin financial company when it comes to its BTC holdings, in line with BitcoinTreasuries.
Bitcoin treasury corporations ranked by BTC holdings. Source: BitcoinTreasuries
The company's most up-to-date BTC purchase got here on Tuesday when it purchased 4,279 BTC for about $451 million.
However, despite accumulating a considerable amount of BTC, the corporate's stock price has fallen in lockstep with the remainder of the crypto treasury sector, including Strategy – the most important BTC treasury company, BitMine, Nakamoto and others.
