Kitabo Co., a Japanese textile manufacturer, plans to purchase $5.4 million in Bitcoin to stabilize its finances after years of losses. The company will utilize dollar-cost averaging to acquire the digital asset, marking its entry into cryptocurrency as a treasury asset. This move aligns with a trend in Asia where firms are adopting Bitcoin to hedge against monetary debasement. Despite a 24.7% revenue increase in fiscal 2025, Kitabo reported a net loss and negative cash flow. The firm intends to leverage its Bitcoin holdings for cross-border services and generate yield by lending portions to crypto lending companies. This reflects a broader corporate shift towards recognizing Bitcoin's potential as a treasury asset, especially in the wake of clearer regulatory frameworks and its establishment as a key asset following a U.S. ETF listing. As more traditional companies adopt similar strategies, the trend appears to extend beyond the tech sector, emphasizing the importance of securing purchasing power in a volatile economic environment.

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