Analysis: Structural Weakness of Yen May Grant Metaplanet Lower Bitcoin Financing Costs Compared to U.S. Peers

Odaily News Bitcoin analyst and investor at a crypto asset treasury firm, Adam Livingston, stated that the Japanese-listed Bitcoin treasury company Metaplanet possesses potential structural advantages over its U.S. counterparts, with the core reason being the long-term weakness of the Japanese yen. Livingston pointed out that Japan's debt-to-GDP ratio is approximately 250%, and the high debt level continues to erode the yen's purchasing power, diluting the financing costs denominated in yen within the Bitcoin and U.S. dollar-denominated systems. Data shows that since 2020, Bitcoin has risen by about 1159% in U.S. dollar terms, while it has gained about 1704% in yen terms. Livingston believes that Metaplanet bears interest and liabilities in a weakening fiat currency, leading to a decline in its actual Bitcoin-denominated financing costs over time, whereas the debt erosion for U.S. companies financing in dollars is relatively slower. This analysis comes at a time when the overall valuation of Bitcoin treasury companies is under pressure, with most companies' stock prices still weakening amid industry adjustments. (Cointelegraph)