Jetking Infotrain: First Indian Public Firm to Hold Bitcoin in Reserves

Key Takeaways:

• Historic Bitcoin Adoption: Jetking Infotrain is the first publicly traded Indian company to include Bitcoin in its treasury, purchasing 12 BTC worth $1.2 million.
• Strategic Financial Move: The company allocated over 26% of its $4.5 million market cap to Bitcoin, aiming to boost long-term share prices by blending equities and BTC.
• Navigating Regulations: Jetking collaborates with crypto legal expert Suril Desai to ensure compliance and facilitate formalization within India’s regulatory framework.
• Crypto Industry Milestone: This development coincides with significant global crypto investments, such as MicroStrategy’s purchase of 21,550 BTC and Riot Platforms’ $500M BTC acquisition plan.
• Challenges and Opportunities: Despite hurdles like India’s 30% crypto gains tax, Jetking’s move showcases the increasing acceptance of Bitcoin as a legitimate asset class in India.

Jetking Infotrain has carved a new milestone in India’s financial landscape by becoming the first publicly traded company in the country to hold Bitcoin (BTC) as part of its treasury reserves. On December 9, 2024, the company purchased 12 BTC valued at approximately $1.2 million, marking a bold move that integrates traditional finance with crypto assets.

According to Jetking Infotrain’s CEO, Avinash Bharwani, this decision reflects the firm’s strategy to blend equities with Bitcoin in its treasury to foster long-term growth in share value. Currently, Jetking’s Bitcoin holdings represent over 26% of its $4.5 million market capitalization.

Read more: How to buy Bitcoin in India

Strategic Vision and Regulatory Talks

In a conversation at the Bitcoin Conference MENA, Bharwani emphasized the groundbreaking nature of this step, stating:

“We are the first ones to do it, and we are kind of talking to the regulators to see how we can formalize it and make sure everything is within that spectrum.”

Jetking Infotrain’s move is being carefully aligned with India’s evolving crypto regulations. The firm has enlisted prominent crypto lawyer Suril Desai to facilitate discussions with regulatory bodies. Desai, who previously played a pivotal role in lifting the Reserve Bank of India’s (RBI) banking restrictions on crypto firms, is helping to ensure compliance while building a robust framework for crypto adoption.

A Legacy of Innovation

Founded in 1947 as Jetking Electronics, the company initially focused on electronic goods trading. It later transitioned into training services and became publicly listed on the Bombay Stock Exchange in 1986. The company reported an operating income growth of nearly 39% in the recent quarter, reflecting its strong financial footing.

This historic decision follows a series of significant developments in the crypto space, including MicroStrategy’s acquisition of 21,550 BTC and Bitcoin miner Riot Platforms unveiling plans to raise $500 million for Bitcoin purchases.

Overcoming Challenges in Crypto Adoption

Jetking Infotrain’s foray into Bitcoin is not without hurdles. Bharwani acknowledged the challenges posed by India’s 30% tax on crypto gains and ongoing efforts to clarify tax reporting requirements for Bitcoin holdings. However, he expressed optimism that the regulatory groundwork laid by pioneers like Desai has positioned India for broader crypto adoption.

Pioneering a New Financial Era

Jetking Infotrain’s Bitcoin acquisition symbolizes the growing acceptance of crypto as a legitimate asset class. This move sets a precedent for other Indian companies to consider Bitcoin as a viable option for treasury management, further bridging the gap between traditional and digital finance.

As the global financial world increasingly embraces Bitcoin, Jetking Infotrain’s bold step could mark the beginning of a transformative era for Indian businesses exploring crypto adoption.

Source: CryptoSlate