Many anticipated that Dell Technologies might add Bitcoin to its balance sheet following a series of cryptic, crypto-themed posts from CEO Michael Dell. However, the company’s Q2 earnings report showed no signs of Bitcoin or any other cryptocurrencies, despite earlier speculation.
No Bitcoin in Dell’s Q2 Report
On August 29, Dell Technologies reported strong earnings, driven largely by growing demand for AI solutions. Despite the positive financials, there was no mention of Bitcoin in the earnings call or the accompanying results filing, dispelling rumors that the tech giant had considered adding the cryptocurrency to its treasury.
Speculation about Dell’s potential interest in Bitcoin started after Michael Dell made a series of posts on social media that appeared to be pro-crypto. On June 21, Dell tweeted, “Scarcity creates value,” a phrase closely associated with Bitcoin due to its capped supply of 21 million. This was followed by his retweet of a post by MicroStrategy CEO Michael Saylor, who asserted, “Bitcoin is Digital Scarcity.” Dell even hosted a Twitter poll on June 29, where Bitcoin won as the most important option over AI, love and relationships, or none of the above.
Dell’s last Bitcoin-related post on July 16 further fueled speculation. He commented, “fascinating Bitcoin,” in response to an interview with BlackRock CEO Larry Fink, who had shifted from skepticism to interest in Bitcoin after studying it. Yet, despite the buzz created by these posts, Dell’s latest earnings report shows no evidence that the company has moved to purchase or hold Bitcoin.
Also Read: Dell and Saylor Discuss Bitcoin Scarcity on Social Media
Crypto Holdings in Corporate America
Companies typically disclose digital asset holdings in their financial reports. For instance, Tesla revealed its $1.5 billion Bitcoin purchase in Q1 2021 through its financial filings. Other companies, like MicroStrategy, have also made Bitcoin a prominent part of their treasury strategies. MicroStrategy, led by Bitcoin advocate Michael Saylor, currently holds 226,500 Bitcoin, valued at approximately $13.4 billion.
However, Dell Technologies has not joined this list, despite the CEO’s public musings on Bitcoin. The absence of any mention of cryptocurrency in the latest report suggests that, for now, the company remains focused on other growth areas.
Dell’s Earnings Boosted by AI Demand
While the Bitcoin speculation didn’t materialize, Dell’s Q2 earnings exceeded expectations, primarily due to the increasing demand for AI-optimized solutions. The company reported a total revenue of $25 billion, a 9% increase compared to the previous year, and outpaced analysts’ predictions of $24 billion.
Dell’s vice chairman and COO, Jeff Clarke, highlighted AI as a significant driver of this success. “Our AI momentum accelerated in Q2, and we’ve seen an increase in the number of enterprise customers buying AI solutions each quarter,” Clarke stated. He noted that demand for AI-optimized servers reached $3.2 billion, marking a 23% sequential increase and $5.8 billion year-to-date.
