Dell Technologies’ Q2 2024 earnings results had the crypto community abuzz, with speculation that the company might add Bitcoin (BTC) to its balance sheet.
No Bitcoin Purchases For Dell Yet Despite CEO Michael Dell’s enigmatic posts on X about Bitcoin’s digital scarcity, Dell Technologies has not yet invested in BTC, as confirmed by their Q2 earnings report.
Dell’s recent social media activity, including reposts of Bitcoin advocate Michael Saylor, had fueled rumors that Dell might be planning to buy BTC. However, the latest earnings report has dampened these expectations.
The earnings filings, which highlight a 9% year-over-year revenue increase to $24 billion driven by rising AI demand, make no mention of Bitcoin or any other cryptocurrency. The report and earnings call contained no reference to BTC purchases in the second quarter of 2024.
Reactions on X were mixed. Some users suggested that no major corporation would invest in BTC until the issue of quantum threats is resolved. Others speculated that a company like Dell could have acquired between $25-$100 million in BTC without disclosing it in their GAAP financials, as such amounts might be considered immaterial.
Materiality in accounting refers to the significance of financial items or discrepancies, where immaterial items are those whose inclusion or omission does not impact a reasonable investor’s decision-making process.
While Dell may not have joined the ranks of companies holding Bitcoin, institutional interest in BTC remains strong.
Michael Saylor’s MicroStrategy, for example, holds over 226,000 BTC, worth more than $13.4 billion at current prices, and plans to raise $700 million to buy more BTC. Other major holders include Galaxy Digital Holdings, Tesla, and Coinbase Global, with 15,449 BTC, 11,509 BTC, and 9,183 BTC, respectively.
The success of Bitcoin exchange-traded funds (ETFs) in the US further reinforces BTC’s appeal among sophisticated investors seeking a hedge against fiat currencies prone to inflation due to their potentially unlimited supply.
