Bitcoin: Metaplanet Benefits from the Weakness of the Yen

For a few years now, Japan has been experiencing an economic situation that would make more than one finance minister pale: abyssal public debt, fixed interest rates, and a yen that seems to be quietly sliding towards oblivion. Once a bastion of stability, the Japanese currency is now the favorite hunting ground of some shrewd investors. Among them, Metaplanet, a crypto company that has scented the opportunity. Because in finance, crises are also opportunities. Especially when you know how to turn a weak bill into a growth lever.

The yen as Achilles’ heel: Japan under pressure, Bitcoin on the lookout

Japan carries colossal public debt, equivalent to about 250% of its GDP. A situation some would call a ticking time bomb. But by continuously buying back its own bonds, the Bank of Japan artificially keeps interest rates at unrealistic levels. Which has the side effect… of weighing down the yen.

Economist Robin Brooks analyzes this paradox with lucidity:

The key point to understand is that long-term interest rates in Japan — although they have risen significantly — remain well below what they would be if markets could freely set them. Currently, the Bank of Japan remains a major buyer of government bonds in gross volume, which means long-term yields are effectively capped.

Result? The yen becomes a collateral victim of monetary policies considered too loose. And against this backdrop, bitcoin presents itself as a bulwark. Not only does it escape the inflationary logic, but it appreciates much faster against a currency in free fall.

Since 2020, BTC has gained 1,704% in yen versus 1,159% in dollars. The gap is clear, and the smartest know how to take advantage.

Metaplanet, or the art of exploiting a systemic imbalance

This is exactly what Metaplanet understood. The Japanese company specializing in bitcoin reserves didn’t just buy BTC. It did so with financing conceived as a geo-financial arbitrage strategy. By using a currency losing value (the yen) to buy a deflationary asset like bitcoin, it optimizes its cost of capital.

Adam Livingston, crypto investor and BTC analyst, explains this mechanism clearly in a series of tweets:

Every coupon Metaplanet pays is in a currency that has lost value relative to BTC and the dollar. Thus, the real cost (expressed in BTC) of this 4.9% coupon keeps decreasing.

In comparison, Strategy — its U.S.-based competitor — pays a 10% coupon in dollars. Result: when both companies buy the same amount of bitcoin, Metaplanet retains more net value per share. An advantage that accumulates and accelerates book value growth.

Japan weakens, Metaplanet grows: when bitcoin serves as a strategic lever

With 35,102 BTC in its vaults, Metaplanet now ranks fourth worldwide among companies holding the most bitcoin reserves. And this despite an overall sector downturn. Its latest purchase of 4,279 BTC for 451 million dollars shows its strategic aggressiveness. While others struggle, Metaplanet stacks the coins.

This model could inspire other companies located in countries with structurally weak currencies. Imagine an Argentine or Turkish company replicating this strategy with pesos or Turkish liras. The logic is simple: borrow in soft currency, invest in bitcoin, repay in weakened money. A crypto version of carry trade.

In Japan, this strategy benefits from particularly fertile ground. The yen is historically used in leveraged strategies. In finance, it’s called “carry.” And in a world where bitcoin is considered a safe haven, it gives new dimension to the concept.

Key figures to remember

• The bitcoin price at the time of writing: 92,519 dollars;
• Japan’s debt/GDP ratio: about 250%;
• Bitcoin return since 2020: in dollars: +1,159% and in yen: +1,704%;
• Metaplanet coupon: 4.9% (in yen);
• Strategy coupon: about 10% (in dollars).

Metaplanet’s strategy impresses, but another recent move steals the spotlight. Tether has just made a big hit, with a spectacular purchase of 8,888 BTC. In the world of crypto treasures, competitions are launched, and the numbers are dizzying. At this rate, even maximalists will have to follow the accounts with a calculator.