Facing persistent operational difficulties and mounting currency devaluation pressures, century-old Japanese textile manufacturer Kitabo Co., Ltd. has officially embraced Bitcoin, integrating it into its strategic corporate asset portfolio. Kitabo announced plans to invest up to ¥800 million (approximately $5.4 million USD) in Bitcoin through a dollar-cost averaging approach, while also exploring crypto lending as a means to ease financial strain and diversify its assets.
Founded over a hundred years ago and listed on the Tokyo Stock Exchange, Kitabo specializes in synthetic fibers and industrial-grade textiles. Despite a nearly 25% year-on-year revenue increase in fiscal year 2025, the company remained unprofitable, posting a net loss of around $37,900 (¥55.8 million). Compounding the challenge, operating cash flow remained negative, with ¥7.7 million flowing out during the same fiscal year.
Company executives noted that Bitcoin is increasingly regarded as “digital gold” by institutions. In particular, the launch of U.S.-listed Bitcoin ETFs and growing regulatory clarity worldwide have enhanced the legitimacy and practicality of digital assets. Kitabo sees this as a critical juncture in its journey toward globalization and digital transformation.
The company plans to utilize funds raised in its recently completed fourth round of warrant-based financing to gradually acquire Bitcoin via licensed domestic crypto exchanges. Kitabo views the cryptocurrency as a vital asset in its strategy for cross-border collaboration and global resource allocation. It also disclosed intentions to deploy part of its Bitcoin holdings in crypto lending markets to generate passive income and ease cash flow concerns.
Industry observers are watching closely. Jeffrey Ding, Head of Research at HashKey Group, commented, “In the past, crypto adoption was largely confined to the tech and financial sectors. Now, even traditional manufacturers are entering the space—this signals that institutional adoption has reached an ‘industrial-grade’ phase.”
Zakhil Suresh, CEO of BitSave Asset Management, added, “Corporations gradually moving away from cash-heavy treasury models reflects a growing awareness of the instability of today’s monetary systems. Bitcoin’s scarcity and inflation-resistance make it an increasingly attractive hedge against currency risk for global enterprises.”
Kitabo’s move aligns it with other Asian firms like Metaplanet, a pioneer in Bitcoin adoption among traditional companies. Metaplanet currently holds over 16,000 BTC, worth nearly $2 billion, ranking it among the world’s top ten corporate Bitcoin holders.
According to real-time data from Google Finance, Kitabo’s stock is currently priced at ¥237 (approx. $1.52), more than double its 52-week low—signaling initial market approval of its strategic pivot.
Against a backdrop of global economic uncertainty, inflationary pressures, and urgent calls for industrial transformation, Kitabo’s pivot may be just the tip of the iceberg. Whether more Asian legacy enterprises will follow its lead and integrate Bitcoin into their long-term asset strategies remains a question worth watching.