Jetking Infotrain, a well-known Indian company, made headlines recently by becoming the first publicly traded company in India to adopt Bitcoin (BTC) as a reserve asset for its treasury. The company purchased 12 BTC on December 9, making its Bitcoin reserve worth approximately $1.2 million at the current price of $97,986.35 per BTC.
With a market cap of nearly $4.5 million, Jetking Infotrain’s BTC stash represents over 26% of its overall size. In a recent interview with Bitcoin advocate Max Keiser at the Bitcoin Conference MENA in Abu Dhabi, CEO Avinash Bharwani revealed that the company’s treasury strategy would involve a mix of equities and BTC to enhance the company’s long-term value.
Bharwani expressed the company’s commitment to working with regulators to formalize and ensure compliance with regulations. Jetking Infotrain, originally established in 1947 as Jetking Electronics, has a long history in India’s electronic goods trading sector and went public in 1986 on the Bombay Stock Exchange.
According to data from Livemint, the company reported a profit of $366,520 in the first quarter, with a significant increase in operating income both quarterly and annually. This move by Jetking Infotrain coincided with other significant Bitcoin-related announcements, such as MicroStrategy adding more BTC to its holdings and Riot Platforms planning to raise $500 million to purchase BTC.
Leading the discussions with regulators for Jetking Infotrain is prominent crypto lawyer Suril Desai, known for his involvement with India-based exchange Unocoin and his successful efforts to challenge the Reserve Bank of India (RBI) ban on banks facilitating crypto transactions. Desai’s work led to the lifting of the ban, allowing individuals and companies to hold Bitcoin legally in India.
Bharwani emphasized the importance of the regulatory changes, stating that it laid the foundation for Bitcoin and blockchain adoption in India. However, he noted that tax reporting for Bitcoin gains in India is still a work in progress, with a tax rate of 30%.
Overall, Jetking Infotrain’s decision to add Bitcoin to its treasury showcases a growing acceptance and adoption of cryptocurrencies in traditional financial settings. With the support of regulators and legal experts like Suril Desai, Indian companies are navigating the complexities of integrating digital assets into their financial strategies.