Kitabo Co., Ltd, a 70-year-old textile company listed on the Tokyo Stock Exchange, has declared its full-scale entry into the cryptocurrency market by accepting Bitcoin (BTC) as an asset storage method. As part of a strategy to overcome years of financial losses, Kitabo plans to sequentially purchase Bitcoin totaling 800 million yen (approximately 7.5 billion won) through dollar-cost averaging (DCA).
In its official announcement, the company stated that "this is our first comprehensive entry into the cryptocurrency and physical asset markets," revealing that by holding BTC, they aim to secure the company's financial stability and expand their global payment network simultaneously. This asset acquisition will utilize funds secured through new stock subscription rights, and Kitabo intends to expand its use of acquired Bitcoin to transactions with overseas partner companies and revenue-generating lending businesses.
Kitabo's decision aligns with the trend of strategic Bitcoin adoption among Japanese companies. Nexon, a Japanese multinational game company, has already purchased 1,717 BTC (approximately 282.6 billion won) and has adopted BTC as a payment method. Metaplanet, considered a leader in Bitcoin adoption, has transformed its business model from hotel operations to Bitcoin asset management and currently holds 16,352 BTC (approximately 2.6 trillion won), ranking 7th in global Bitcoin corporate holdings.
Although Kitabo recorded a net loss of approximately 115.6 million yen (about 1 billion won) in the 2024 fiscal year, it aims to escape this loss structure through a Bitcoin-centered financial strategy. This is interpreted as an attempt to catch two birds with one stone: improving cross-border transaction efficiency through cryptocurrency and supplementing constrained cash flow.
The actions of Japanese companies reveal a growing perception of Bitcoin as a practical value storage method amid concerns about the weakening purchasing power of the yen and inflation. This represents an attempt to reduce dependence on traditional assets like dollars and gold and establish a diversified asset management system, and is considered an important trend indicating that Asian companies' cryptocurrency strategies have entered a full-scale trajectory.
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