Japan’s Kitabo Joins Growing List of Asian Firms Turning to Bitcoin Amid Financial Strain

A centuries-old Japanese textile company has become the last financially battered company that turns to Bitcoin as a Treasury asset and announces plans to buy up to $ 5.4 million (800 million yen) in crypto to stabilize the Bottom Line after years of losses and damped cash flow.

Kitabo Co., Ltd., a textile manufacturer that produces synthetic fibers and industrial materials in Tokyo Stock-Foots, announced in a rack on Tuesday that it is gradually starting to acquire Bitcoin The use of dollar cost averages from this month.

The relocation marks the full accession of the company in the “cryptocurrency and real-world activa company,” said it.

Kitabo now belongs to a growing selection of Asian companies that take on Bitcoin Treasury strategies, because traditional companies are increasingly considering digital active as a hedge against monetary debasement and a basis for international business activities.

“Adding Bitcoin to the balance is a powerful proof of the expansion of this trend outside the technical sector,” said Hashkey Group Chief analyst Jeffrey Ding Decrypt.

Kitabo Co. reported an increase in the turnover of 24.7% on an annual basis for Fiscal 2025But the year still ended with a net loss of $ 379,357 (¥ 55.8 million) and negative operational cash flow of $ 52,348 (¥ 7.7 million).

This followed a even steeper loss of $ 785,000 (¥ 115.6 million) Fiscal 2024When the company relied on one -off profit to compensate for weak core performance.

In the hope of strengthening losses, Kitabo is planning to acquire Bitcoin through domestic crypto fairs using funds that have been collected from the fourth series of equity acquisition rights.

The company is also planning to use the crypto for “cross -border services, including partnerships with various overseas companies”, which positions Bitcoin as a “fundamental assets for promoting various business strategies”.

Kitabo Co. is planning to generate proceeds on his bitcoin holdings by borrowing portions to crypto -credit companies for stable returns, it said.

Although the trend is hardly new, industry experts regard the move as an indication for a broader company that is awakened for Bitcoin’s potential as a treasury activum.

“Historically, cash and cash equivalents were the majority of the company treasures,” said Zakhil Suresh CMT, founder and CEO at Crypto Asset Manager Bitsave, said Decrypt. “But now more and more companies are waking up with the idea that cash is no longer safe.”

“This is not about chasing returns – it is about protecting the company’s purchasing power in a world of constant monetary expansion,” Suresh added.

The trend for adoption of the business Bitcoin has gained strength in Asia, with Metaplanet leads the load As the most prominent business Bitcoin holder in Japan. With 16,352 BTC worth around $ 1.95 billion, Metaplanet is worldwide according to the seventh worldwide Bitcoin Treasuries facts.

Kitabo Co. is traded at $ 1.52 (¥ 237.00) per Google Finance Data, an increase of 0.85% in the day and more than 100% compared to its low of 52 weeks.