Weak Japanese yen and low interest rates give the company cheaper Bitcoin-aligned financing
Metaplanet may hold a structural financial advantage over US-based peers due to persistent weakness in the Japanese yen. Analysts point to Japan’s macroeconomic conditions as a key factor that lowers Metaplanet’s effective cost of capital while amplifying its Bitcoin exposure.
Japan’s debt-to-GDP ratio of roughly 250% has placed long-term pressure on the yen, which continues to depreciate as monetary expansion is used to finance government deficits. For companies borrowing in yen, this creates a unique dynamic: liabilities lose real value over time when measured against harder assets like Bitcoin.
Since 2020, Bitcoin has appreciated by approximately 1,159% against the US dollar, but by about 1,704% against the Japanese yen, highlighting how currency weakness magnifies Bitcoin-denominated gains.
Because Metaplanet issues debt and pays interest in yen, the real cost of its coupon declines relative to Bitcoin. By contrast, US-based Bitcoin treasury companies typically issue dollar-denominated debt, meaning their liabilities erode more slowly.
Bitcoin Holdings and Market Performance
Metaplanet currently holds 35,102 BTC, ranking it among the largest Bitcoin treasury companies globally. Despite aggressive accumulation, its stock price has declined alongside the broader digital asset treasury sector during the recent market downturn.
In an environment of currency debasement, borrowing in a weakening fiat currency may offer a durable edge for Bitcoin-focused balance sheets.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.