Dell Technologies has delivered robust earnings for Q2 2024, driven by rising demand for artificial intelligence (AI) solutions, but contrary to speculation, there is no sign of Bitcoin on its balance sheet.
Key Highlights
- Earnings Report: Dell’s Q2 earnings, filed on August 29, revealed a 9% increase in total revenue, reaching $25 billion, surpassing analysts’ expectations of $24 billion. The company reported record server and networking revenue of $7.7 billion, a significant 80% increase from the previous year.
- AI-Driven Growth: A major factor behind Dell’s strong performance was the growing demand for AI. AI-optimized server demand alone hit $3.2 billion for the quarter, reflecting a 23% sequential increase and a total of $5.8 billion year-to-date.
CEO’s Cryptic Crypto Posts
Speculation about Dell potentially investing in Bitcoin intensified due to a series of cryptic social media posts from CEO Michael Dell:
- June 21: Dell posted “Scarcity creates value,” a phrase commonly associated with Bitcoin’s finite supply.
- June 29: He conducted a poll on social media asking what was more important: AI, Bitcoin, Love and relationships, or none of the above. Bitcoin emerged as the winner with 43% of the vote.
- July 16: Dell commented “fascinating Bitcoin” in response to an interview with BlackRock CEO Larry Fink, indicating a shift in his perspective on Bitcoin.
Despite these hints, Dell’s Q2 filing does not reflect any Bitcoin purchases or holdings. Unlike companies such as Tesla and MicroStrategy, which have disclosed their cryptocurrency investments in their earnings reports, Dell Technologies has not made any such disclosures.
Broader Context
- Tesla and Bitcoin: Tesla’s Bitcoin investment was publicly revealed in its Q1 2021 filing when it purchased $1.5 billion in Bitcoin.
- MicroStrategy: MicroStrategy, led by Bitcoin advocate Michael Saylor, remains one of the largest corporate holders of Bitcoin, with a stash of 226,500 BTC valued at around $13.4 billion.
Dell Technologies’ latest financial performance underscores the company’s strength in AI-driven growth while leaving Bitcoin enthusiasts and analysts wondering about the true extent of Dell’s interest in cryptocurrency.
