Bakkt Holdings acquired approximately 30% of Tokyo-listed textile company MarushoHotta for $115 million, becoming the largest shareholder and planning to rebrand the yarn maker as “Bitcoin.jp,” effectively pivoting toward crypto treasury operations.
The acquisition transforms the 120-year-old Japanese manufacturer into a Bitcoin-focused investment vehicle under new CEO Phillip Lord, President of Bakkt International.
From Textiles to Crypto Treasury
MarushoHotta will integrate Bitcoin and digital assets into its treasury strategy while maintaining its Tokyo Stock Exchange listing under ticker TSE: 8105.
Bakkt secured the premium Bitcoin.jp domain as part of the transaction, subject to shareholder approval for the complete corporate rebrand from traditional textiles to crypto treasury management.
The move represents Bakkt’s latest attempt to revitalize its struggling business model after losing major clients Bank of America and Webull, which accounted for 17% and 74% of respective revenue segments.
Bakkt authorized up to $1 billion in Bitcoin investments under its treasury policy in June, filing a shelf registration with the SEC to raise capital for digital asset acquisitions.
Co-CEO Akshay Naheta praised Japan’s regulatory environment as creating “an ideal platform for a Bitcoin-centered growth business” while positioning MarushoHotta as a leading Bitcoin treasury company.
The acquisition follows Bakkt’s failed merger talks with Trump Media and continued financial challenges, including NYSE compliance warnings and class-action lawsuit threats.
Notably, the NYSE compliance warnings emerged after the stock traded below $1 for 30 consecutive days, forcing Bakkt to implement cost-cutting measures and legal entity integration with NYDFS approval.
Struggling Crypto Platform Seeks Revival Through Asian Expansion
Bakkt’s acquisition strategy emerges from mounting financial pressures that have devastated the company since its 2021 SPAC merger.
The NYSE-listed platform warned investors about substantial doubt regarding its ability to continue operations due to inadequate cash reserves and consecutive operating losses.
Bank of America terminated its commercial agreement in April, eliminating 17% of Bakkt’s loyalty services revenue.
Webull’s June departure removed 74% of crypto services revenue, triggering a 27% stock plunge and postponed earnings calls that attracted legal scrutiny from federal securities law violation allegations.
The company’s shares collapsed by over 96% from their October 2021 peak of $1,063 to current levels around $13.
In March 2024, former SoftBank executive Akshay Naheta joined as co-CEO alongside Andy Main, bringing experience from $4 billion Nvidia investments and semiconductor industry connections.
The MarushoHotta transformation follows successful Bitcoin treasury strategies by companies like MicroStrategy and Metaplanet, which achieved massive share price gains through aggressive cryptocurrency accumulation.
Competitionally, Japan’s favorable regulation provides operational advantages compared to the improving U.S. crypto policies that were strict under previous administrations.
However, since Trump’s new administration, crypto regulations have been one of its primary focuses and have achieved significant progress within the past few months.
Bitcoin Treasury Trend Drives Corporate Transformation Strategy
MarushoHotta’s pivot from yarn manufacturing to Bitcoin treasury management capitalizes on growing corporate adoption of cryptocurrency balance sheet strategies.
The company joins an increasing number of traditional businesses embracing digital assets as inflation hedges and growth catalysts amid economic uncertainty.
According to data from Bitcoin Treasuries, over 289 companies now hold over 3.65M BTC worth approximately $416 billion. Strategy is leading the list with 628,791 in total BTC acquired so far.
Notably, Phillip Lord’s appointment as CEO brings crypto payment expertise from his previous role at Oobit, which enabled cryptocurrency payments on existing Visa and Mastercard terminals with fiat settlements.
His background positions MarushoHotta to integrate Bitcoin operations with traditional business infrastructure.
Most significantly, the Bitcoin.jp domain acquisition provides even more valuable branding assets for Japanese crypto market expansion.
Premium crypto domains like this command significant valuations as they can quickly establish immediate market recognition for corporate digital asset strategies.
Bakkt’s $1 billion shelf registration enables flexible capital raising through various securities, including convertible notes, bonds, and equity offerings.
The registration allows opportunistic Bitcoin purchases based on market conditions and capital availability without separate SEC filings for each transaction.
Looking forward, MarushoHotta shareholders must approve the Bitcoin.jp rebrand and treasury strategy changes at the upcoming meetings.
The corporate transformation requires Tokyo Stock Exchange approval for fundamental business model alterations from traditional manufacturing to cryptocurrency investment operations.
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