Hidden Advantages of MetaPlanet for Strategies: Leveraging the Yen Depreciation Benefit

Japan’s structural economic challenges could significantly reshape the landscape of crypto asset treasury companies. According to Cointelegraph’s report, MetaPlanet is securing a competitive advantage in fundraising under this environment.

The Long-Term Weakening of the Japanese Yen Creates an Advantage

BTC analyst and crypto investor Adam Livingston states that Japan’s economic situation is extremely unique. The country’s debt-to-GDP ratio has reached approximately 250%, necessitating continuous yen printing each year to cover deficits. This process inevitably erodes the yen’s purchasing power and increases debt burdens in currency terms.

This background has a profound impact on companies like MetaPlanet. Livingston’s analysis shows that since 2020, Bitcoin has risen about 1,159% in USD terms. However, when measured in Japanese yen over the same period, BTC’s growth rate reaches 1,704%. This gap clearly indicates that the yen has been depreciating not only against the dollar but also relative to Bitcoin’s value.

Structural Advantages in Corporate Debt Strategies

For MetaPlanet, this environment provides a unique advantage in fundraising. When a company takes on yen-denominated debt, the debt’s value diminishes over time relative to USD and BTC, effectively reducing the real repayment burden.

For example, consider the 4.9% coupon (interest) that MetaPlanet pays. While this rate is nominal, factoring in yen depreciation means the actual BTC-denominated cost decreases further. Livingston explains that the annual coupon payments, being in currencies that continue to lose value in BTC and USD terms, gradually lessen the company’s actual debt burden.

Meanwhile, treasury strategies of other companies involve paying 10% coupons in USD, carrying debt in a stronger currency, which results in a slower reduction of debt’s real value compared to MetaPlanet.

Challenges and Positioning of the Crypto Treasury Sector

The entire crypto asset treasury sector is currently facing significant difficulties. Several companies have experienced over 90% loss from their peak values, and since the historic market downturn in October, the recovery path has been longer than expected.

Despite these headwinds, MetaPlanet continues its BTC accumulation strategy, now holding 35,102 BTC, ranking as the 4th largest Bitcoin treasury company. Recently, on Tuesday, it purchased approximately 4,279 BTC for $451 million, accelerating the growth of its BTC assets.

Stock Price Decline and Strategy Divergence: The Importance of a Long-Term Perspective

Interestingly, despite MetaPlanet’s progress in accumulating BTC, its stock price continues to decline along with other sector companies like Strategy, BitMine, and Nakamoto. There is a significant disconnect between short-term market sentiment and the company’s medium-term strategy of expanding BTC holdings.

This situation suggests that the true value of MetaPlanet’s yen-denominated debt strategy may not be fully recognized by the market. As long as Japan’s economic structural issues persist, this advantage is likely to endure.