Dell Results Show No Bitcoin Impact Despite CEO's Optimism

August 30, 2024 03:42 PM AEST | By Team Kalkine Media

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Dell Results Show No Bitcoin Impact Despite CEO's Optimism — Image source: shutterstock

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Dell Technologies did not include Bitcoin on its balance sheet in its Q2 earnings report, despite earlier speculation fueled by CEO Michael Dell’s crypto-themed social media activity. The company's earnings, detailed in the filing on August 29, showed robust performance driven by rising demand for artificial intelligence (AI) solutions, but there was no mention of Bitcoin or other cryptocurrencies.

Michael Dell's social media posts in recent months led to speculation about potential Bitcoin acquisition. On June 21, Dell shared a post on X stating, “Scarcity creates value,” a phrase often linked to {Bitcoin} (BTC) due to its limited supply of 21 million coins. He further fueled speculation by sharing a reply from Michael Saylor, CEO of MicroStrategy, who described Bitcoin as "Digital Scarcity," and by reposting a whimsical image of a cookie monster eating Bitcoin.

Dell also engaged his followers in a June 29 poll about the relative importance of AI, Bitcoin, love and relationships, or none of the above. Bitcoin emerged as the top choice with 43% of the votes. His final Bitcoin-related comment came on July 16, when he described Bitcoin as “fascinating” in response to an interview with BlackRock CEO Larry Fink, indicating a shift from his previous skepticism.

Despite these indications, Dell Technologies’ Q2 report did not reveal any Bitcoin or cryptocurrency acquisitions. It is common practice for companies to disclose significant investments or holdings in digital assets, as demonstrated by Tesla’s $1.5 billion Bitcoin purchase in Q1 2021 and MicroStrategy’s substantial Bitcoin holdings, which currently amount to 226,500 Bitcoin.

In its Q2 earnings, Dell Technologies reported a revenue of $25 billion, surpassing analyst expectations of $24 billion. This represents a 9% increase from the previous year, driven by a 80% rise in servers and networking revenue, totaling $7.7 billion. Jeff Clarke, vice chairman and COO, attributed the strong performance to the accelerating demand for AI solutions. AI-optimized server demand alone was reported at $3.2 billion for the quarter, up 23% sequentially, and $5.8 billion year-to-date.

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