Dell Technologies’ Q2 2024 earnings results have the cryptocurrency industry on the edge of its seat, as the company was expected to become the latest to add Bitcoin (BTC) to its balance sheet.
No Bitcoin has been purchased by Dell yet.
Despite CEO Michael Dell’s cryptic posts on social media platform X highlighting the scarcity of digital bitcoin, Dell Technologies has not added any bitcoin to its balance sheet and second-quarter earnings results yet. Make sure.
Michael Dell lately series 100% of posts on X indicated that the billionaire CEO may be bullish on the long-term potential of the leading digital asset.
Michael Dell’s reposting of posts by Michael Saylor, a prominent Bitcoin bull, has increased excitement about Dell possibly adding Bitcoin to its balance sheet. However, the recent earnings report has dampened the cryptocurrency industry’s enthusiasm for the time being.
The earnings filings do not mention any Bitcoin purchases in Q2 2024. While the report notes that the company’s revenue in Q2 2024 was $24 billion — a 9% year-over-year (YoY) increase driven primarily by growing demand for AI — Bitcoin or any other cryptocurrency was not mentioned in the report or the company’s earnings call.
The lack of Bitcoin on Dell’s balance sheet has sparked mixed reactions to X. Some users express his opinion No major company will buy Bitcoin until it solves its quantum threat. Hang on A large company like Dell could buy $25-$100 million worth of BTC without being required to disclose it in its financial statements under GAAP, as it would be considered immaterial.
For starters, materiality in accounting refers to the importance of an amount, transaction, or discrepancy. If an item is deemed immaterial, it means that its inclusion or deletion would not affect the decision-making process of a reasonable investor or stakeholder.
However, it is wise to temper optimism and rely solely on what the company reveals in its earnings report.
A Look at Institutional Appetite for Bitcoin
While Dell may not be the latest company to join the distinguished list of companies with Bitcoin on their balance sheet, that doesn’t mean there’s a lack of institutional interest in the leading digital asset by market cap.
Michael Saylor’s MicroStrategy holds over 226,000 bitcoins on its balance sheet, worth over $13.4 billion at current market prices. MicroStrategy is expected to continue adding the orange coin to its financials, having recently announced plans to raises $700 million to buy BTC.
Other noteworthy names Holds Bitcoin includes the likes of Galaxy Digital Holdings, Tesla, and Coinbase Global, which hold 15,449 BTC, 11,509 BTC, and 9,183 BTC respectively.
The star performance The growth of Bitcoin exchange-traded funds (ETFs) in the United States has cemented Bitcoin’s status as a preferred asset among sophisticated investors, allowing them to hedge their bets against fiat currencies that suffer from potentially unlimited supply, and the resulting inflation.
Featured image from Unsplash.com, chart from TradingView.com
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