Jetking Raises Funds but Spends it on Bitcoin, Not Business
In a shocking move, Jetking Infotrain, a debt-free IT hardware training company, has announced that it will invest the funds it raised through a preferential allotment in Bitcoin rather than using it for business expansion. The company’s decision to pivot to crypto has raised eyebrows across the market, with many wondering if this is a wise move for a business looking to scale.
According to reports, Jetking Infotrain raised ₹6.1 crore (approximately $800,000) through a preferential allotment, which is a type of equity financing. However, instead of using this money to invest in its business, the company decided to use it to buy 21 Bitcoins. This decision seems to have paid off, with Jetking’s Bitcoin investment delivering 175% returns in just one year.
Jetking’s decision to invest in Bitcoin is a significant departure from the traditional approach of using raised funds to expand a business. Typically, companies use funds raised through equity financing to invest in new projects, hire more employees, or expand their operations. However, Jetking’s management seems to have taken a different approach, opting to put its money into the volatile world of cryptocurrencies.
The company’s decision to invest in Bitcoin has been met with skepticism by many in the market. Some have questioned whether this is a wise use of funds, given the high risks associated with investing in cryptocurrencies. Others have expressed concern that this move may not be in the best interests of the company’s shareholders, who may have expected the funds to be used for business expansion rather than speculation.
However, Jetking’s management seems to be confident in its decision. In a statement, the company’s CEO said that the decision to invest in Bitcoin was made after careful consideration and consultation with financial experts. The CEO explained that the company believes that Bitcoin has the potential to be a long-term store of value and that investing in it aligns with the company’s long-term strategy.
Jetking’s pivot to crypto has also raised questions about the company’s focus on its core business. As a training company, Jetking’s primary focus should be on providing high-quality training programs to its students. However, it seems that the company is now diverting resources away from its core business to pursue a speculative investment in cryptocurrencies.
The company’s decision to invest in Bitcoin has also raised concerns about its use of funds. As a publicly listed company, Jetking is required to disclose the use of funds raised through equity financing. However, it is unclear how the company will account for the use of funds in its financial statements, given that it has chosen to use them for a speculative investment in cryptocurrencies.
Jetking’s decision to invest in Bitcoin is not the first time that a company has chosen to use its funds for a speculative investment in cryptocurrencies. In recent years, there have been several instances of companies using their funds to invest in cryptocurrencies, often with disastrous results. For example, in 2020, the Canadian company, Tezos, raised $60 million through an initial coin offering (ICO) and used the funds to invest in cryptocurrencies. However, the company’s investment in cryptocurrencies ultimately failed to deliver the expected returns, leading to a significant decline in the company’s stock price.
In conclusion, Jetking Infotrain’s decision to raise funds and then invest them in Bitcoin rather than using them for business expansion is a significant development in the world of business. While the company’s decision to invest in Bitcoin has delivered significant returns, it raises questions about the company’s focus on its core business and the use of funds. As the company continues to navigate the complex and rapidly changing world of cryptocurrencies, it will be important for investors and stakeholders to closely monitor its progress and ensure that the company is operating in a responsible and transparent manner.
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