Jetking Embarks on Bitcoin Strategy Amid 30% Crypto Tax

Jetking, a 77-year-old Indian brand, has made a significant shift by embracing Bitcoin as a core part of its business strategy. Originally known for manufacturing radios and televisions, and later for IT education, the company faced severe challenges during the COVID-19 pandemic. With 200 centers across India experiencing a drastic decline in business, Jetking's leadership explored various ideas to revive the company. Ultimately, they decided to transform into a Bitcoin-centric entity.

In an interview, Jetking's CFO Siddarth Bharwani highlighted the symbolic and financial implications of holding Bitcoin as a treasury asset. This move has attracted a new class of investors, particularly younger or tech-savvy retail investors. The company aims to hold 210 Bitcoins by the end of 2025. Despite India's 30% tax on crypto profits, Jetking has adopted a 'Never Sell Bitcoin' strategy. This approach avoids taxable events by not realizing profits on its Bitcoin holdings, instead noting changes in value as revaluation reserves in financial reports.

Jetking's strategy is not without its challenges, particularly given the Reserve Bank of India's (RBI) concerns about crypto being used for illegal cross-border transfers. The company addresses these worries by purchasing all Bitcoin through regulated, FIU-registered exchanges and storing it with institutional-grade custodians that follow KYC and AML checks. As India works on formalizing its crypto regulations, Jetking hopes for fairer rules. The company supports government oversight but advocates for a shift from the flat 30% tax to a graded capital gains model based on the holding period. They also seek clarity on GST exemption when crypto is used purely as a treasury reserve, not as payment or service.

Jetking's decision to invest heavily in Bitcoin reflects a growing acceptance of cryptocurrencies as a viable asset class, even in regions with stringent regulatory environments. The company views Bitcoin as a store of value, akin to gold, rather than a speculative asset. By holding onto their Bitcoin investments, Jetking aims to protect its financial assets from inflation and currency devaluation, persistent issues in the Indian economy. This long-term vision underscores the potential of cryptocurrencies to disrupt traditional financial systems, even in the face of regulatory hurdles.

Jetking's bold move into the world of cryptocurrencies is a testament to its forward-thinking mindset. The company is positioning itself at the forefront of a financial revolution, one that could redefine the way businesses and individuals approach wealth management and investment. Despite the risks associated with the volatile nature of Bitcoin and the uncertain regulatory environment, Jetking's strategic approach demonstrates a willingness to take calculated risks for potential long-term gains. This move not only highlights the company's resilience in the face of adversity but also its commitment to innovation and adaptation in an ever-changing financial landscape.