Analysis: Structural Weakness of the Yen May Grant Metaplanet a Lower Bitcoin Financing Cost Advantage Compared to US Peers

Odaily News According to Adam Livingston, a Bitcoin analyst and investor in crypto asset treasury companies, Japan-listed Bitcoin treasury company Metaplanet possesses potential structural advantages over its US 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 this high debt level continues to erode the purchasing power of the yen, causing yen-denominated financing costs to be continuously diluted within the Bitcoin and US dollar valuation systems. Data shows that since 2020, Bitcoin has appreciated by about 1159% in US dollar terms, but by about 1704% in Japanese yen terms. Livingston believes that Metaplanet bears interest and liabilities in a weakening fiat currency, so its actual financing cost in Bitcoin terms decreases over time. In contrast, US companies financing in dollars experience a relatively slower erosion of their liabilities. This analysis was released at a time when the overall valuation of Bitcoin treasury companies is under pressure, with the stock prices of most companies still weakening amid industry adjustments. (Cointelegraph)