Dell Technologies’ Q2 2024 financial results have the cryptocurrency industry on edge, with expectations that the company will be the next to add Bitcoin (BTC) to its balance sheet.

Dell has not made any purchases with Bitcoin yet

Despite CEO Michael Dell’s cryptic posts on social media platform X highlighting bitcoin’s digital rarity, Dell Technologies has yet to add any BTC to its balance sheet or Q2 financial results confirm.

Michael Dell’s latest work number posts on X indicated that the billionaire CEO may be hopeful about the long-term potential of the leading digital asset.

Michael Dell Reposts Praised Bitcoin Bull Michael Saylor’s posts have added to the excitement surrounding Dell’s potential addition of BTC to its balance sheet. However, the latest earnings report has cooled the cryptocurrency industry’s enthusiasm for now.

The earnings documents do not mention any BTC purchases made in Q2 2024. While the report indicates that the company’s Q2 2024 revenue was $24 billion, up 9% year-over-year (YoY), driven primarily by growing demand for artificial intelligence, BTC or any other cryptocurrency was not mentioned in the report or during the company’s earnings conference call.

The lack of Bitcoin on Dell’s balance sheet has sparked mixed reactions to X. Some users expressed an opinion that no major company will buy BTC until it solves its quantum threat. Others he commented that a huge company like Dell could buy $25 to $100 million of BTC without disclosing it in its GAAP financial statements because it would be considered immaterial.

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

With this in mind, you should exercise caution and rely solely on what a company discloses in its earnings report.

A Look at the Institutional Appetite for Bitcoin

While Dell is not the latest company to join the separate list of companies with Bitcoin on their balance sheet, that does not mean there is a lack of institutional interest in the leading digital asset by market capitalization.

Michael Saylor’s MicroStrategy has over 226,000 BTC on its balance sheet, valued at over $13.4 billion at current market prices. MicroStrategy is expected to continue adding the orange coin to its finances, as it recently went public with its plans to raise $700 million to purchase BTC.

Other renowned names that to hold BTC includes companies such as Galaxy Digital Holdings, Tesla, and Coinbase Global, holding 15,449 BTC, 11,509 BTC, and 9,183 BTC, respectively.

Star efficiency The rise of Bitcoin ETFs in the US has further solidified BTC as the asset of choice for savvy investors, allowing them to hedge against fiat currencies that have a potentially unlimited supply and, as a result, inflation.

Featured image from Unsplash.com, chart from TradingView.com