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The manufacturing firm has turned to the asset, adopting the treasury model, citing steep financial losses.<\/p>\n
It has joined the rising list of Japanese companies adopting this strategy, contributing to the billions of dollars already invested in bitcoin within the country.<\/p>\n
Kitabo Co., Ltd, a company that engages in the production and sale of synthetic fiber spun yarns listed on the Tokyo Stock Exchange,\u00a0announced<\/a> on Tuesday that it will start accumulating Bitcoin via dollar-cost averaging (DCA).\u00a0The plan is to purchase \u00a5800 million ($5.4 million) worth of BTC to stabilize the firm after years of losses and minimal cash flow.<\/p>\n The team further noted that \u201cthis marks the company\u2019s full-scale entry into the cryptocurrency and real-world asset business.\u201d<\/span><\/p>\n<\/blockquote>\n Kitabo has now joined the ranks of Asian peers that employ the Bitcoin treasury strategy, given its increasing use as a hedge against currency devaluation.<\/p>\n The company has been struggling with annual net losses, hemorrhaging\u00a0<\/a>\u00a5115.6 million ($785,000), in fiscal 2024, but hopes to turn the tide around with the treasury implementation.<\/p>\n It plans to acquire Bitcoin through local exchanges using funds it raised from its fourth Series of Stock Acquisition Rights. Additionally, it will use the cryptocurrency for cross-border services and partnerships with overseas businesses.<\/p>\n Kitabo Co. also intends to generate a yield on its Bitcoin holdings by lending some of what it has accumulated to lending companies in exchange for returns.<\/p>\n The yarn producer is not the first business in Japan to implement the initially coined \u201cStrategy strategy.\u201d<\/p>\n Perhaps the most prominent example is Metaplanet, which transitioned<\/a> from a hotel business to a Bitcoin treasury entity, currently holding 16,352 BTC, valued at $1.93B at the time of printing, according to data from BitcoinTreasuries.<\/p>\n They are currently ranked 7th on the site, trailing Trump Media & Technology Group\u2019s stash of 18,430 Bitcoin and well above Galaxy Digital Holdings\u2019 12,830 pile, with\u00a0premiums of $2.18 billion and $1.52 billion, respectively.<\/p>\n Video game giant Nexon also\u00a0turned<\/a> to the top asset a while back, and they even accept it as a form of payment. They currently hold 1,717 BTC with a current price of $203.21 million.<\/p>\n LIMITED OFFER for CryptoPotato readers at Bybit: Use this link<\/a> to register and open a $500 FREE position on any coin!<\/b><\/p>\n<\/div>\n<\/div>\n\n
Not a First for Japan<\/h2>\n
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