tl;dr
Jetking Infotrain, a publicly traded Indian company, has become the first in the country to hold Bitcoin as a reserve asset for its treasury. The company purchased 12 BTC, worth approximately $1.2 million, representing over 26% of its market cap. The CEO stated that the company aims to mix equities ...
Jetking Infotrain, a publicly traded Indian company, has made history by becoming the first in the country to hold Bitcoin as a reserve asset for its treasury. The company acquired 12 BTC, valued at approximately $1.2 million, which represents over 26% of its market capitalization. CEO Avinash Bharwani aims to combine equities and BTC to enhance long-term value and is in discussions with regulators to formalize this groundbreaking move.
The decision comes in the wake of heightened adoption of Bitcoin by public companies, with prominent crypto lawyer Suril Desai leading discussions with regulators. This development follows the lifting of a nearly 2-year ban on banks facilitating crypto transactions in India, spurred by a pivotal decision from India's Supreme Court.
Jetking Infotrain's bold step mirrors the growing trend, coinciding with MicroStrategy adding 21,550 BTC to its reserve and Bitcoin miner Riot Platforms announcing plans to raise $500 million to acquire BTC. The company's profit for the first quarter was reported at $366,520, demonstrating robust performance.
Suril Desai's involvement in the discussions with regulators is notable, given his previous role in representing India-based exchange Unocoin in advocating for crypto-related rights. His efforts contributed to the Supreme Court's directive for the Reserve Bank of India to lift the ban on banks facilitating crypto transactions, laying the foundation for legal Bitcoin holdings on company balance sheets.
Jetking Infotrain's pioneering move and the subsequent regulatory discussions mark significant progress for Bitcoin and blockchain in India. While this breakthrough paves the way for legal Bitcoin holdings, challenges such as tax reporting for Bitcoin gains in India, currently set at 30%, remain a work in progress.