Structural advantage created by the weak yen… MetaPlanet in an advantageous position in the Bitcoin treasury competition

An analysis said that Japanese Bitcoin treasury firm MetaPlanet may be in a financially advantageous position compared to other digital-asset treasury firms thanks to a structural weakness of the yen.

On the 5th (local time), Cointelegraph reported that Bitcoin analyst and treasury firm investor Adam Livingston pointed out that Japan's debt-to-gross domestic product (GDP) ratio is about 250%. He explained that repeated increases in yen supply to cover fiscal deficits are weakening the currency over the long term, and this structure acts as a relative advantage for companies holding yen-denominated debt.

According to Livingston, since 2020 Bitcoin has risen about 1159% in dollar terms, but about 1704% in yen terms. This means the yen's decline has proceeded faster relative to Bitcoin. In MetaPlanet's case, because debt and interest payments are made in yen, the structure is such that real financial costs in Bitcoin terms decrease over time.

He said, "The 4.9% coupon MetaPlanet pays is paid in a currency whose value is continuously declining," adding, "real costs compared to Bitcoin or the dollar continue to decrease." By contrast, Strategy pays an annual coupon of around 10% in dollars, so the value of its debt is diluted more slowly, he added.

This analysis came as digital-asset treasury (DAT) firms overall have shown weak performance since the large correction in October. Some treasury firms' stock prices have fallen more than 90% from their highs, making it difficult to restore market confidence.

Meanwhile, MetaPlanet currently holds about 35,102 Bitcoin, making it the fourth-largest among Bitcoin treasury firms. It recently also added 4,279 BTC in a transaction worth about $451 million, but its stock price, along with other treasury firms such as Strategy, continues to undergo a correction.