KLab Inc., a Japanese mobile game developer that cut a quarter of its workforce earlier this year, is betting on cryptocurrency to turn around its fortunes.
The Tokyo-listed company said Friday it signed a capital and business alliance with Ultimate Classic Investment, a UAE-based firm backed by royal family members and other investors. UCI specializes in crypto asset management and Middle East marketing.
The partnership comes as KLab seeks to diversify beyond its shrinking gaming operations. The company posted a net loss of ¥2.78 billion ($17.9 million) in fiscal 2024 and announced plans in May to eliminate roughly 100 positions from its 389-person staff.
KLab said it intends to purchase bitcoin and other digital assets to strengthen its balance sheet and launch blockchain-related ventures. The company believes UCI’s expertise in crypto markets will create synergies across both financial and operational dimensions.
As part of the arrangement, KLab will appoint Sheikh Salem Khalid Humaid Mohammed Al Qasimi, a member of the Ras Al Khaimah royal family, as an advisor. The company cited his experience in corporate management and financial strategy.
The pivot mirrors moves by other struggling firms that have embraced cryptocurrency as an alternative treasury strategy. Whether the approach will stabilize KLab’s finances remains uncertain, particularly given the volatile nature of digital asset markets and the company’s continued losses in its core business.
