The 70-year old textile firm joins the growing trend of Asian companies adopting the leading asset.
The manufacturing firm has turned to the asset, adopting the treasury model, citing steep financial losses.
It has joined the rising list of Japanese companies adopting this strategy, contributing to the billions of dollars already invested in bitcoin within the country.
Kitabo Co., Ltd, a company that engages in the production and sale of synthetic fiber spun yarns listed on the Tokyo Stock Exchange, announced on Tuesday that it will start accumulating Bitcoin via dollar-cost averaging (DCA). The plan is to purchase ¥800 million ($5.4 million) worth of BTC to stabilize the firm after years of losses and minimal cash flow.
The team further noted that “this marks the company’s full-scale entry into the cryptocurrency and real-world asset business.”
Kitabo has now joined the ranks of Asian peers that employ the Bitcoin treasury strategy, given its increasing use as a hedge against currency devaluation.
The company has been struggling with annual net losses, hemorrhaging ¥115.6 million ($785,000), in fiscal 2024, but hopes to turn the tide around with the treasury implementation.
It plans to acquire Bitcoin through local exchanges using funds it raised from its fourth Series of Stock Acquisition Rights. Additionally, it will use the cryptocurrency for cross-border services and partnerships with overseas businesses.
Kitabo Co. also intends to generate a yield on its Bitcoin holdings by lending some of what it has accumulated to lending companies in exchange for returns.
The yarn producer is not the first business in Japan to implement the initially coined “Strategy strategy.”
Perhaps the most prominent example is Metaplanet, which transitioned from a hotel business to a Bitcoin treasury entity, currently holding 16,352 BTC, valued at $1.93B at the time of printing, according to data from BitcoinTreasuries.
They are currently ranked 7th on the site, trailing Trump Media & Technology Group’s stash of 18,430 Bitcoin and well above Galaxy Digital Holdings’ 12,830 pile, with premiums of $2.18 billion and $1.52 billion, respectively.
Video game giant Nexon also turned to the top asset a while back, and they even accept it as a form of payment. They currently hold 1,717 BTC with a current price of $203.21 million.
