Bitcoin News Today: Bakkt Acquires 30% of MarushoHotta for $115M to Rebrand as Bitcoin.jp

Bakkt Holdings Inc. has acquired a 30% stake in Tokyo-listed textile company MarushoHotta for $115 million, positioning itself as the largest shareholder in the 120-year-old firm. The move is part of a strategic rebranding initiative to transition the company into a Bitcoin-focused investment vehicle, with plans to rebrand it as “Bitcoin.jp” [1]. This shift marks a significant pivot from traditional yarn manufacturing to a crypto treasury model under the leadership of Phillip Lord, President of Bakkt International, who will serve as CEO of the rebranded entity [1].

The rebranding effort includes the acquisition of the premium Bitcoin.jp domain and is subject to shareholder approval. The company will maintain its Tokyo Stock Exchange listing under ticker TSE: 8105 while integrating Bitcoin and digital assets into its treasury strategy [1]. This transformation aligns with broader trends of corporate entities adopting Bitcoin as part of their balance sheet strategies to hedge against inflation and drive growth [1].

Bakkt’s move comes amid continued financial and operational challenges. The company has faced declining revenue and operational losses, partly due to the loss of major clients like Bank of America and Webull, which accounted for significant portions of its loyalty and crypto services revenue [1]. In response, Bakkt filed a $1 billion shelf registration with the U.S. Securities and Exchange Commission (SEC) to facilitate digital asset acquisitions [1]. The acquisition of MarushoHotta represents a strategic pivot toward Asian markets, where regulatory environments are perceived as more favorable for crypto operations [1].

The rebranding also follows failed merger discussions with Trump Media and ongoing compliance issues with the New York Stock Exchange, including warnings over the stock trading below $1 for 30 consecutive days [1]. Despite these challenges, Bakkt has taken steps to stabilize its operations, including cost-cutting measures and legal entity integrations with approval from the New York Department of Financial Services [1].

Bakkt has positioned Japan as an ideal jurisdiction for its Bitcoin-centered strategy, with Co-CEO Akshay Naheta praising the country’s regulatory framework [1]. The move also reflects the influence of successful Bitcoin treasury strategies implemented by companies such as MicroStrategy and Metaplanet, which have seen significant share price appreciation through aggressive crypto accumulation [1].

Phillip Lord’s appointment as CEO brings expertise in crypto payments, having previously led Oobit, a company that enabled cryptocurrency transactions on existing card networks with fiat settlement [1]. His background suggests a focus on integrating traditional financial infrastructure with Bitcoin operations. Additionally, the acquisition of the Bitcoin.jp domain is expected to enhance brand visibility and market recognition in Japan, a key market for digital assets [1].

Looking ahead, MarushoHotta’s shareholders must approve the rebranding and treasury strategy changes, a process that requires Tokyo Stock Exchange approval for the fundamental shift from manufacturing to cryptocurrency investments [1]. The company’s transformation highlights the growing trend of traditional firms leveraging digital assets to navigate economic uncertainties and pursue new growth avenues [1].

Source: [1] Bakkt Buys 30% of Japanese Yarn Maker, Plans Rebrand to Bitcoin.jp

https://cryptonews.com/news/bakkt-buys-30-of-japanese-yarn-maker-plans-rebrand-to-bitcoin-jp/