So, a century-old Japanese textile company, Kitabo Co., is officially jumping on the Bitcoin bandwagon, and not just for kicks. This financially bruised firm is ready to bet up to $5.4 million (800 million yen) on Bitcoin, hoping the volatile crypto might just be the secret ingredient to save them after years of dwindling profits. A desperate move? Maybe. But also, it’s the perfect example of traditional companies finally waking up to what Bitcoin can do, besides looking cool on your digital wallet.
Kitabo Co., a company you’d probably never think would embrace crypto, is a Tokyo Stock Exchange-listed textile manufacturer that produces synthetic fibers and industrial materials. Well, they just announced on Tuesday that they’ll start acquiring Bitcoin, yes, the same cryptocurrency that makes the price of pizza fluctuate, using dollar-cost averaging starting this month.
What does this mean for Kitabo? Besides entering the "cryptocurrency and real-world asset business" (their words, not mine), it also sets them on a path to join a growing list of Asian corporations who are turning to Bitcoin as a hedge against the financial chaos of our modern world.
A Strategic Shift to Secure the Future
Jeffrey Ding, chief analyst at HashKey Group, summed it up nicely:
“To add Bitcoin to its balance sheet is a powerful testament to this trend's expansion beyond the tech sector."
Translation? Bitcoin’s appeal isn’t just for Silicon Valley geeks anymore; it's for your granddad’s textile company too.
Despite seeing a 24.7% jump in revenue for fiscal 2025, Kitabo ended the year with a loss of $379,357 (¥55.8 million). Yep, that’s right. Even after a 25% boost in sales, they still couldn’t break even, finishing up with negative operating cash flow. And the previous year? Well, let’s just say they lost a cool $785,000 (¥115.6 million). So, what’s the plan? Bitcoin to the rescue, of course!
Kitabo’s going to grab that crypto via domestic exchanges, funded by its Fourth Series of Stock Acquisition Rights. And why? Well, they’ve got big plans for it, cross-border partnerships and using Bitcoin as a “foundational asset” to boost their business strategy. Maybe Kitabo isn’t just about textiles anymore; they’re also about transforming into a cutting-edge, cross-border, crypto-powered behemoth.
As if that wasn't bold enough, Kitabo also plans to earn some sweet returns by lending a portion of their Bitcoin to crypto lending companies. While this isn’t exactly a novel move (let’s be honest, plenty of companies are already doing it), it’s a sign that more companies are realizing Bitcoin might be the lifeline they need in a world where cash is becoming more and more... useless.
Zakhil Suresh, CEO of crypto asset manager BitSave, put it bluntly: “Cash is no longer safe.” And he’s right, companies are realizing they need to protect their purchasing power, not just chase returns. It’s not about crypto being a get-rich-quick scheme; it’s about survival.
Asia is leading the corporate Bitcoin charge, with Metaplanet in Japan holding a massive 16,352 BTC, worth around $1.95 billion. Kitabo may not be quite at Metaplanet’s level yet, but they’re making moves in a market that’s increasingly warming up to the idea of digital currency as a treasury asset.
As for Kitabo’s stock price? It’s sitting pretty at $1.61 (¥236.00) per share, up 0.43% on the day and over 100% from its 52-week low.
Seems like Bitcoin might just be the spark they needed. Let’s see how long this crypto gamble pays off.
Tanya Petrusenko
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource, and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice. HODL FM strongly recommends contacting a qualified industry professional.
