A 164-year-old kimono maker is about to become Bitcoin Japan. What does this tell us about corporate survival in the digital age? According to an expert at Ultrabrokers, the move reflects more than just a desperate pivot. It signals how legacy industries worldwide may increasingly view Bitcoin as a lifeline when traditional revenue streams dry up.
When Heritage Meets Disruption
What happens when a company founded before the American Civil War bets its future on Bitcoin? Shareholders of Marusho Hotta will answer that question on November 11, when they formally approve the firm’s transformation into Bitcoin Japan Corporation.
The rebrand caps a dramatic shift that began in June. That’s when US-based crypto custody firm Bakkt Holdings acquired a controlling stake in the struggling textile maker. For Bakkt, the deal offers a foothold in Japan’s growing Bitcoin treasury market. For Marusho Hotta, it represents a last chance at relevance.
Lower kimono sales have pushed the company into years of losses. The firm posted a net loss of 407.32 million yen (approximately $2.7 million) in FY2024 alone. Traditional retail channels continue to shrink as younger Japanese consumers move away from formal wear. The question was never whether Marusho Hotta needed to change. It was whether Bitcoin could be the answer.
The Textile Industry’s Bitcoin Bet
Marusho Hotta is not alone in this pivot. Fellow Tokyo-listed firm Kitabo, a synthetic yarns producer, announced similar plans earlier this year. The company committed roughly $5.4 million to Bitcoin purchases as part of its entry into crypto and real-world asset sectors.
Both firms share a common story: declining revenues, mounting losses, and diminishing market positions. Kitabo posted a net loss of $785,000 for FY2024. Like Marusho Hotta, it saw traditional business lines evaporate as consumer preferences shifted and international competition intensified.
The EU-Japan Center for Industrial Cooperation put it bluntly in 2021: “Old, traditional retailers have seen sales diminish as they become less and less viable.” That assessment has only grown more accurate. For companies like Kitabo and Marusho Hotta, Bitcoin represents both a treasury hedge and a business model reset.
Bakkt’s Strategic Play
The deal structure tells its own story. Bakkt International President Phillip Lord will take over as CEO of Bitcoin Japan. Akshay Naheta, co-CEO of Bakkt Holdings, becomes Chairman of the Board. This isn’t a hands-off investment. Bakkt is installing its own leadership to execute a specific vision.
That vision centers on building what Bakkt calls “a leading Japanese Bitcoin treasury company.” The plan includes Bitcoin accumulation, BTC lending services, and finance-related operations tied to the treasury. Marusho Hotta’s September 26 statement made clear this represents a complete business transformation, not just a side venture.
Will this structure work? Bakkt brings expertise in crypto custody and institutional-grade infrastructure. Japan offers a regulatory environment increasingly friendly to digital assets. The combination could position Bitcoin Japan as a bridge between traditional Japanese finance and global crypto markets.
Following Metaplanet’s Lead
Marusho Hotta and Kitabo are following a path already blazed by Metaplanet. The Japanese firm has aggressively accumulated Bitcoin throughout 2024, buying enough to rank among the world’s top five corporate BTC holders. Its success has turned heads across Japanese boardrooms.
Other companies have taken notice. Remixpoint, a loyalty points provider, added Bitcoin to its treasury. Game developer Gumi did the same. Fashion retailer ANAP joined the trend. The common thread? All saw Bitcoin as a way to modernize balance sheets and signal forward-thinking management to investors.
The strategy carries risks, of course. Bitcoin’s volatility remains a concern for shareholders accustomed to stable textile revenues. Yet for firms already posting annual losses, that volatility may seem less threatening than the slow death of their core business.
Regulatory Clarity as Catalyst
Japan’s regulatory approach has made these pivots possible. The country established clear frameworks for cryptocurrency operations years ago. Companies know what compliance looks like. They understand tax treatment. They can plan around regulatory requirements rather than regulatory uncertainty.
That clarity stands in stark contrast to other major markets. While the US debates crypto regulation and Europe implements piecemeal frameworks, Japan has offered a relatively stable environment. For firms like Bakkt, that makes Japan an attractive market for Bitcoin treasury operations.
The November shareholder vote will test whether investors share management’s vision. If approved, Bitcoin Japan will become a case study watched closely by struggling companies worldwide.
What This Means for Corporate Bitcoin
So where does this trend lead? Will more legacy firms abandon traditional operations for Bitcoin treasuries? Or will early movers like Marusho Hotta discover that rebranding can’t solve fundamental business challenges?
The answers will emerge over the next 12 to 24 months. Success for Bitcoin Japan could trigger a wave of similar moves across Japan and beyond. Failure could make boards more cautious about radical crypto pivots.
As experts at Ultrabrokers point out, the real story isn’t just about Bitcoin adoption. It’s about how companies respond when their original business models become obsolete. Some will find new life through digital assets. Others will discover that even Bitcoin can’t save a company without a viable strategy.
Final Word
Marusho Hotta’s transformation into Bitcoin Japan represents a fascinating intersection of heritage and innovation. A 164-year-old kimono maker is betting its future on digital currency. Bakkt is betting it can turn a struggling textile firm into a Bitcoin powerhouse.
The stakes are real. Shareholder value, employee futures, and Bitcoin’s reputation as a corporate treasury asset all hang in the balance. By year’s end, we’ll have a clearer picture of whether this bold pivot represents genuine transformation or a final gamble by companies with few options left.
Disclaimer: This article is purely informational and doesn’t offer trading or financial advice. Its content is not intended to be investment advice. We do not guarantee the validity of the information, especially when it pertains to third-party references or hyperlinks.
