Century-Old Japanese Textile Firm Turns to Bitcoin as Treasury Asset

Kitabo Co., a Tokyo Stock Exchange-listed textile manufacturer and a century-old family business, announced plans to invest up to ¥800 million (approximately $5.4 million) in Bitcoin. The company aims to stabilize its finances following recent losses and subpar cash flow by diversifying its treasury assets.

Investment Details

• Kitabo plans to acquire Bitcoin using dollar-cost averaging starting this month.
• The textile company intends to add Bitcoin to its balance sheet as a core treasury asset for stable treasury returns, not solely for yield generation.
• The investment amount is roughly equivalent to funds raised from the company’s Fourth Series of Stock Acquisition Rights.

Broad Trend in Asia

“To add Bitcoin to its balance sheet is a powerful testament to this trend’s expansion beyond the tech sector,” HashKey Group chief analyst Jeffrey Ding told Decrypt.

Reasons for Adoption

Kitabo’s move aligns with a broader trend across Asia, where established firms like Metaplanet are adopting Bitcoin primarily as a hedge against financial debasement and inflation concerns. Industry experts point to declining trust in cash as a reliable store of value.

“Historically, cash and cash equivalents formed the bulk of corporate treasuries,” said Zakhil Suresh, founder & CEO of BitSave. “But now, more and more companies are waking up to the idea that cash is no longer safe.” He added: “This isn’t about chasing returns—it’s about protecting the purchasing power of the company in a world of constant monetary expansion.”

Financial Context

Kitabo Co. reported a 24.7% year-over-year increase in revenue for its fiscal 2025, but ended the period with a net loss of ¥55.8 million (~$580,000) and negative operating cash flow. The company also reported a ¥115.6 million (~$785,000) net loss in fiscal 2024, which it attributed to underlying operational weakness despite one-time gains.

Strategic Use

Kitabo intends to position Bitcoin as a foundational asset, potentially facilitating “cross-border services, including partnerships with various overseas businesses.” While it stated its primary objective is treasury returns, it did indicate some Bitcoin might be lent to crypto lending companies to generate supplemental revenue.

Recent Performance & Context

The move places Kitabo Co. among a growing roster of Asian companies exploring Bitcoin as part of their treasury management strategies. Metaplanet stands as a primary benchmark in Japan, holding over 16,400 BTC valued at roughly $2 billion according to market data.

Industry’s Sea Change

“This is a significant shift in corporate thinking,” said an industry expert. “Companies are starting to view Bitcoin differently – less as high-risk speculation and more as an inflation hedge, especially in volatile global monetary environments.”

Market Position

Kitabo shares are trading at ¥237 per share, up 0.85% for the day and more than 100% from their 52-week low.