Dell Q2 2024 Earnings Results Disappoint the Crypto Industry, No Bitcoin (BTC) Purchases Yet

Dell Technologies' Q2 2024 earnings results had the crypto industry on the edge of its seat, anticipating the company might become the latest to add Bitcoin (BTC) to its balance sheet.

Dell Technologies’ Q2 2024 earnings results were closely monitored by the crypto industry, with anticipation that the company might join the growing list of firms adding Bitcoin (BTC) to their balance sheet.

However, a review of Dell’s Q2 earnings report by Blockworks reveals that the company has not yet added any BTC to its balance sheet.

Despite CEO Michael Dell’s recent cryptic posts on social media platform X highlighting Bitcoin’s digital scarcity, the company’s earnings results and subsequent filings show no evidence of any Bitcoin purchases.

Michael Dell’s recent series of posts on X, ranging from posts about Bitcoin being scarce in the digital realm to posts sharing commentary by prominent Bitcoin bull Michael Saylor, had sparked speculation that the billionaire CEO might be bullish on the long-term potential of the leading digital asset.

Michael Dell reposting Saylor’s posts further fuelled the excitement among some within the crypto industry about Dell potentially adding BTC to its balance sheet.

However, the latest earnings report, which typically provides detailed insights into a company’s financial performance and any major acquisitions or investments made during the quarter, has tempered the crypto industry’s enthusiasm — at least for now.

A close examination of the Dell earnings filings reveals no mention of any BTC purchases made in the second quarter of 2024. While the report notes that the company’s Q2 2024 revenue was $24 billion — up by 9% year-over-year (YoY) primarily fueled by growing demand for AI — BTC or any other cryptocurrency did not find any mention in the report or the company’s earnings call.

Some users on X reacted to the lack of Bitcoin in Dell’s balance sheet by suggesting that no major company will buy BTC until it solves its quantum threat. Others commented that a company as big as Dell could buy between $25-$100 million of BTC without being required to disclose it in their GAAP financials, due to it being deemed immaterial.

For the uninitiated, materiality in accounting refers to the significance of an amount, transaction, or discrepancy. If an item is deemed immaterial, it means its inclusion or omission would not impact the decision-making process of a reasonable investor or stakeholder.

That being said, it’s prudent to temper optimism and rely solely on what the company discloses in its earnings report.

A Look At Institutional Appetite For Bitcoin

Although Dell might not be the latest company to join the distinct list of firms with Bitcoin on their balance sheet, it doesn’t mean there is a lack of institutional interest in the leading digital asset by market cap.

Institutions Continue Showing Interest In Bitcoin, Blockworks Analysis Shows

While some might be quick to point out the institutional sell-off of BTC in 2023, which saw some large companies, such as Tesla, reducing their BTC holdings, the year also saw other companies, such as Galaxy Digital, adding BTC to their balance sheet.

A Blockworks analysis of institutional filings with the US Securities and Exchange Commission (SEC) for 2023 reveals that several companies, including the likes of MicroStrategy and Galaxy Digital, made significant changes to their cryptocurrency holdings.

notable names that hold BTC includes the likes of Galaxy Digital Holdings, Tesla, and Coinbase Global, holding 15,449 BTC, 11,509 BTC, and 9,183 BTC, respectively.

The stellar performance of Bitcoin exchange-traded-funds (ETFs) in the US has further solidified BTC as an asset of choice among sophisticated investors, allowing them to hedge their bets against fiat currencies that suffer with potentially unlimited supply, and the ensuing inflation.

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