Analysis: The structural weakening of the yen may give Metaplanet a lower bitcoin financing cost advantage compared to its US counterparts

According to Odaily, Bitcoin analyst and crypto asset treasury company investor Adam Livingston stated that the Japanese publicly listed Bitcoin treasury company Metaplanet has potential structural advantages compared to its US counterparts, with the core reason being the long-term weakening of the yen. Livingston pointed out that Japan's debt-to-GDP ratio is about 250%, and the high level of debt continues to erode the purchasing power of the yen, causing yen-denominated financing costs to be continuously diluted in both Bitcoin and US dollar denominated systems. Data shows that since 2020, Bitcoin has risen by about 1159% in US dollar terms, while in yen terms it has increased by about 1704%. Livingston believes that Metaplanet bears interest and liabilities in a weakening fiat currency, so its actual financing costs denominated in Bitcoin decrease over time, whereas US companies financing in dollars see their liabilities erode at a relatively slower pace. This analysis was released at a time when the overall valuation of Bitcoin treasury companies is under pressure, with most company stock prices still weakening in line with industry adjustments. (Cointelegraph)