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Jetking Makes Bitcoin Primary Treasury Reserve Asset; Share Prices Surge
Indian IT company Jetking Infotrain Limited witnessed a rise in the price of its shares recently, as the company informed that it had invested in Bitcoin (BTC) and intended to use it as the company’s primary treasury reserve asset. With this, Jetking has become the first Indian publicly traded company to include Bitcoin as part of its treasury.
“Jetking’s Board of Directors (the “Board”) has authorized among other things, manage the Company’s Treasury Reserve Assets, with the objective of holding a majority of the Treasury Reserve Assets in BTC, which has been designated to be the Company’s primary Treasury Reserve Asset, subject to market conditions and anticipated needs of the business for Cash Assets” it said in its treasury reserve policy document for FY 2024-2025 and going forward.
It further said that Designated Officers within the organisation were the ones tasked with evaluating and approving decisions pertaining to Reserve Management, including “the amount, timing, and pricing of acquisitions and dispositions of BTC,” and its management.
As of December 16, 2024, Jetking’s share prices stood at Rs 122.87, a 52-week market high for the company. It also outperformed its sector by 8.28% on the given day, as per a report by MarketsMojo.
Maintaining Cash Reserves
Despite its major investments into BTC, Jetking stated that it deemed it important to maintain at least 15% of its revenue in cash assets, “while maintaining adequate liquidity and a reasonable degree of diversification” between the two categories.
Significantly, it further informed that if Designated Officers ever observed cash assets falling below the cash reserve threshold, they would use ‘commercially reasonable efforts’ to meet the threshold, including by “potentially disposing of a requisite amount of BTC,”.
Tracking Jetking’s Investments into Cryptocurrency
In its statement for the financial year ended March 2022, the company listed its investment into Bitcoin to be Rs 5.61 Lakhs for 0.16 units, and Rs 6.37 Lakhs into Ethereum to acquire 2.51 units.
For the year ended March 2023, it purchased 4.64 units of Bitcoin at a price of Rs 1.13 Crore. For Ethereum, it bought 71.98 units for Rs 1.14 Crore. Interestingly, it also listed USDT, also known as Tether – a stablecoin cryptocurrency that is price wise consistent to the US Dollar at a 1:1 ratio – as part of its investments, having purchased 3,563.78 units of the same for Rs 3.12 Lakhs.
As for its financial statements for the year ended March 2024, the company had invested Rs 3.27 Crore for 5.42 Bitcoin units, and Rs 2.25 Crore into 71.98 Ethereum units. As for USDT, it had invested Rs 3.09 Lakh for 3,563.78 units.
