Japanese textile company Kitabo invests in Bitcoin amid financial constraints

Kitabo Co., Ltd., a century-old textile company listed on the Tokyo Stock Exchange, has announced plans to purchase up to $5.4 million (800 million yen) in Bitcoin. This move aims to stabilize its financial situation after several years of losses and weak cash flow.

Strategy for accumulating Bitcoin and expanding business

Kitabo will begin purchasing $BTC gradually using a dollar-cost averaging method starting this month, marking the company's full entry into "cryptocurrency and real-world asset business." The company views Bitcoin as a hedge against currency devaluation and a foundation for international business operations. Kitabo also plans to lend the Bitcoin it holds to generate stable profits.

The decision of #Kitabo reflects the growing trend among Asian corporations, including Metaplanet (the most prominent company in Japan for holding Bitcoin), to adopt a Bitcoin treasury strategy. Although Kitabo reported increased revenue in the fiscal year 2025, the company still ended the year with a net loss and negative operating cash flow.

Jeffrey Ding, chief analyst at HashKey Group, noted that Kitabo's addition of Bitcoin to its balance sheet is a strong testament to the expansion of this trend beyond the technology sector. Industry experts suggest that this move indicates companies are recognizing the potential of Bitcoin as a treasury asset to protect purchasing power in the context of inflation. Kitabo's stock has risen more than 100% from its 52-week low. #anhbacong