- Kitabo Co., a Japanese textile manufacturer, will purchase up to $5.4 million in Bitcoin.
- This move aligns with a trend among Asian firms using Bitcoin as a hedge against currency devaluation.
- The company plans to buy Bitcoin gradually and may lend some holdings to generate additional income.
- Kitabo Co. faced financial losses in its recent fiscal years despite a recent rise in revenue.
- The company views Bitcoin as a foundational asset for cross-border business and stability strategies.
Kitabo Co., a Tokyo-based textile company listed on the stock exchange, announced plans to buy up to $5.4 million in Bitcoin to stabilize its finances. The gradual purchase of the digital asset will begin this month to help offset recent financial losses.
In its official statement, Kitabo Co. said it will acquire Bitcoin using the dollar-cost averaging method—buying small amounts over time to limit market risk. The funds for these purchases will come from its recent stock acquisition rights. The company also stated its intent to lend Bitcoin holdings to generate stable returns.
The move marks Kitabo Co.’s entry into the broader cryptocurrency and real-world asset market. The company reported a 24.7% increase in revenue for fiscal 2025, but continued to operate at a net loss of about $379,000 and a negative operating cash flow of $52,000. In fiscal 2024, net losses reached $785,000, with results propped up by one-time gains.
To add Bitcoin to its balance sheet is a powerful testament to this trend’s expansion beyond the tech sector, said Jeffrey Ding, chief analyst at HashKey Group, according to Decrypt. Zakhil Suresh, CEO at BitSave, added, This isn’t about chasing returns—it’s about protecting the purchasing power of the company in a world of constant monetary expansion.
Across Asia, more traditional firms are adopting Bitcoin for treasury management. Companies such as Metaplanet are using Bitcoin to hedge against monetary debasement. Metaplanet currently holds 16,352 BTC, valued at nearly $2 billion, ranking it seventh among global corporate holders, according to Bitcoin Treasuries data.
Kitabo Co. also plans to use Bitcoin for cross-border services and strategic business initiatives. The company’s stock price recently rose to $1.52 per share, more than double its 52-week low, according to Google Finance.
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