Dell Technologies’ Q2 2024 earnings results created a buzz in the crypto industry, with many expecting the company to join the trend of adding Bitcoin (BTC) to its balance sheet. However, the anticipation was met with disappointment as Dell Technologies has not made any BTC purchases yet, according to their Q2 earnings report.
Despite CEO Michael Dell’s intriguing posts on social media platform X hinting at Bitcoin’s digital scarcity, there is no mention of any BTC acquisitions in the earnings filings. The company reported a Q2 2024 revenue of $24 billion, a 9% increase year-over-year driven by the growing demand for AI. However, BTC or any other cryptocurrency was not included in the report or the company’s earnings call.
Michael Dell’s recent series of posts on X, reposting Bitcoin advocate Michael Saylor’s content, fueled speculation about Dell potentially adding BTC to its balance sheet. The excitement among the crypto industry was palpable, but the latest earnings report has tempered expectations for now.
The lack of Bitcoin on Dell’s balance sheet sparked mixed reactions on X. Some users expressed the belief that major companies would not invest in BTC until it addresses its quantum threat. Others suggested that a company as large as Dell could potentially purchase between $25-$100 million worth of BTC without disclosing it in their financials due to its immateriality.
In accounting, materiality refers to the significance of an amount, transaction, or discrepancy. If an item is deemed immaterial, its inclusion or omission would not impact the decision-making process of investors or stakeholders. Therefore, it is essential to rely on what the company discloses in its earnings report and not solely on speculation.
While Dell may not have joined the ranks of companies holding Bitcoin on their balance sheets, there is still significant institutional interest in the leading digital asset. MicroStrategy, led by Michael Saylor, holds over 226,000 BTC valued at more than $13.4 billion, with plans to raise $700 million to purchase more BTC.
Other notable companies holding BTC include Galaxy Digital Holdings, Tesla, and Coinbase Global, with holdings of 15,449 BTC, 11,509 BTC, and 9,183 BTC, respectively. The performance of Bitcoin exchange-traded funds (ETFs) in the US has further solidified BTC as an asset of choice among sophisticated investors seeking to hedge against fiat currencies susceptible to inflation.
In conclusion, while Dell Technologies has not made any Bitcoin purchases yet, the institutional appetite for Bitcoin remains strong. Companies like MicroStrategy continue to add BTC to their balance sheets, signaling confidence in the digital asset’s long-term potential. As the crypto industry evolves, it will be interesting to see how more companies incorporate Bitcoin into their financial strategies.
