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08/07 17:38

Bakkt Acquires 30% Stake in Japanese Yarn Manufact

Bakkt Acquires 30% Stake in Japanese Yarn Manufacturer, Plans to Rename Bitcoin.jp

Bakkt has acquired a 30% stake in a Japanese yarn manufacturer for $115 million, with plans to rename the company Bitcoin.jp. The 120-year-old textile company is transitioning to cryptocurrency treasury operations.

Bakkt Holdings has acquired approximately a 30% stake in Tokyo-listed textile company MarushoHotta for $115 million, becoming its largest shareholder. The company plans to rename the yarn manufacturer "Bitcoin.jp," effectively transitioning to cryptocurrency treasury operations.

The acquisition will transform the 120-year-old Japanese manufacturer into a Bitcoin-focused investment firm under the leadership of Phillip Lord, President and new CEO of Bakkt International.

From Textiles to Cryptocurrency Fund Management

MarushoHotta will integrate Bitcoin and digital assets into its treasury management strategy while maintaining its listing on the Tokyo Stock Exchange under the ticker symbol TSE: 8105.  As part of the deal, Bakkt acquired the premium Bitcoin.jp domain name, subject to shareholder approval, before completely reshaping the company from its traditional textile business to a cryptocurrency fund management business.

The move is Bakkt's latest attempt to revive its struggling business model after losing major clients Bank of America and Webull, which accounted for 17% and 74% of its revenue, respectively.

Bakkt approved up to $1 billion in Bitcoin investments under its fund management policy in June and filed a shelf registration with the U.S. Securities and Exchange Commission (SEC) to raise funds for digital asset acquisitions.

Co-CEO Akshay Naheta praised Japan's regulatory environment for creating "an ideal platform for growing Bitcoin-centric businesses," while positioning MarushoHotta as a leading Bitcoin fund management firm.

The acquisition follows the collapse of Bakkt's merger talks with Trump Media and ongoing financial challenges, including a compliance warning from the New York Stock Exchange and the threat of a class action lawsuit.

 Notably, the NYSE compliance warning came after the stock had fallen below $1 for 30 consecutive days, forcing Bakkt to implement cost-cutting measures and legal entity consolidation after receiving approval from the New York Department of Financial Services (NYDFS).

Bitcoin.jp, which owns d

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