tl;dr
Kitabo Co., Ltd., a century-old Japanese textile company, plans to purchase up to $5.4 million in Bitcoin to stabilize finances after years of losses. The Tokyo-listed firm will use a dollar-cost averaging strategy starting this month. This move marks Kitabo's entry into cryptocurrency and real-worl...
A century-old Japanese textile company, Kitabo Co., Ltd., has announced plans to purchase up to $5.4 million (800 million yen) in Bitcoin to stabilize its financial situation after years of losses and limited cash flow. The Tokyo Stock Exchange-listed manufacturer, known for synthetic fibers and industrial materials, will start gradually acquiring Bitcoin this month using a dollar-cost averaging strategy.
Kitabo's move signals its full-scale entry into the cryptocurrency and real-world asset business, joining a growing number of Asian corporations adopting Bitcoin for treasury purposes. This shift reflects a broader trend as traditional companies increasingly view Bitcoin as a hedge against monetary debasement and a foundation for international business operations. Industry analysts see this as a clear expansion of Bitcoin adoption beyond the tech sector.
Despite a 24.7% revenue increase in fiscal 2025, Kitabo ended the year with a net loss of approximately $379,357 (¥55.8 million) and negative operating cash flow. The company intends to fund its Bitcoin acquisition through domestic crypto exchanges using proceeds from its Fourth Series of Stock Acquisition Rights. Additionally, it plans to use Bitcoin for cross-border services and partnerships with overseas businesses, positioning the crypto asset as central to its diverse business strategies.
Kitabo also aims to generate stable returns by lending portions of its Bitcoin holdings to crypto lending firms. Experts believe this corporate Bitcoin adoption marks a significant shift in treasury management—moving away from traditional cash holdings towards assets that better protect purchasing power amid ongoing monetary expansion.
This trend is gaining momentum across Asia, with Metaplanet leading Japan’s corporate Bitcoin holdings at approximately 16,352 BTC, worth nearly $1.95 billion. Kitabo’s stock price reflects some optimism, trading at $1.52 per share, up 0.85% on the day and doubling from its 52-week low, illustrating investor interest in the company’s new strategic direction.