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Analyst: Metaplanet has a Japanese Yen advantage over the U.S. Bitcoin Treasury Company
Deep Tide TechFlow News, January 5th, according to Cointelegraph, Bitcoin analyst Adam Livingston pointed out that Bitcoin treasury company Metaplanet may gain a financial advantage due to structural weakness of the Japanese yen. Japan’s debt-to-GDP ratio is about 250%, leading to a continuous weakening of the yen. Since 2020, Bitcoin has appreciated approximately 1,159% against the US dollar, but has appreciated 1,704% against the yen.
Livingston stated that because Metaplanet’s liabilities are denominated in a weaker yen, it benefits from lower-cost financing. “Every coupon payment made by Metaplanet is denominated in a currency that is relatively depreciating against Bitcoin and the US dollar, so the effective cost of the 4.9% coupon continues to decrease.”
Currently, Metaplanet holds 35,102 Bitcoins, making it the fourth-largest Bitcoin treasury company. Despite accumulating a large amount of Bitcoin, the company’s stock price has still declined along with other crypto treasury companies.