Jetking Infotrain is the first publicly listed Indian company to adopt Bitcoin as a treasury asset.
The company’s Bitcoin holdings now represent over 26% of its market value.
Despite a 30% tax on Bitcoin gains in India, Jetking continues to include Bitcoin in its financial strategy.
Jetking Infotrain, a 77-year-old Indian IT training company. Which has become the first publicly listed Indian business to adopt Bitcoin as part of its corporate treasury strategy.
Jetking Infotrain, originally founded in 1947 as Jetking Electronics and listed on the Bombay Stock Exchange in 1986. Which has taken a bold step into digital assets, becoming a pioneer for Indian businesses.
India Bitcoin Reserve
The company announced on December 9 that it had purchased 12 Bitcoin, valued at approximately $1.2 million, marking a significant step in the global trend digital currencies.
With a market cap of around $4.5 million, Jetking Infotrain’s Bitcoin holdings now represent over 26% of its total value. This aligns with a growing global trend of companies using Bitcoin to hedge against inflation.
Firms such as MicroStrategy, Tesla, and Coinbase have pioneered this strategy with Bitcoin. After the announcement of the India Bitcoin reserve, it’s shares went high for over 20%.
Jetking Infotrain’s CEO, Avinash Bharwani, explained about this development, stating that the company plans to mix Bitcoin with equities to increase its long-term value.
During an interview with Bitcoin advocate Max Keiser at the Bitcoin Conference MENA in Abu Dhabi, Bharwani stated, “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.”
The company’s Bitcoin reserve, valued at $1.2 million. Which was purchased at approximately $97,986.35 per Bitcoin as of press time.
Jetking’s move could pave the way for other companies in the country to follow. The Reserve Bank of India (RBI) has previously said reservations about digital currencies, including the launch of its own central bank digital currency (CBDC).
Bharwani also acknowledged the role of crypto lawyer Suril Desai, who has led Jetking’s discussions with regulators. He played an important role in challenging the RBI’s crypto banking ban, which was lifted in 2020 after a Supreme Court ruling.
The 30% tax
While the regulations for Bitcoin in India remains incomplete. Bharwani said that the tax rate on Bitcoin gains in India is currently 30%.
This high tax rate makes using cryptocurrency in business more difficult, Anyhow Jetking is still using Bitcoin in its financial plans as reserve.
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