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Dell Founder’s Tweet Fuels Speculation of Bitcoin Investment Following $2.1 Billion Cashout

Last Updated June 24, 2024 12:19 PM
Teuta Franjkovic
Last Updated June 24, 2024 12:19 PM

Key Takeaways

  • Michael Dell hints at potential Bitcoin interest, sparking speculation about Dell Technologies’ crypto moves.
  • Amid warnings of dollar collapse, Dell’s Bitcoin interest intensifies debate on tech giants embracing crypto.
  • Dell’s Bitcoin dialogue with Saylor highlights growing corporate interest in integrating cryptocurrency.

Michael Dell, CEO of Dell Technologies, which boasts a market cap of over $100 billion, hinted at a possible interest in Bitcoin by resharing a post from Bitcoin advocate Michael Saylor on the social platform X.

After liquidating $2.1 billion of his holdings in 2024, Michael Dell still retains 58% ownership of Dell Technologies, providing him with substantial capital that could potentially be invested in Bitcoin.

Crypto Volatility Spikes on Trump’s Dollar Collapse Warning

This week, cryptocurrency prices have experienced significant volatility, influenced by former US President and 2024 presidential candidate Donald Trump’s stark warning  about a potential collapse of the US dollar. Bitcoin’s value retreated from its earlier monthly high of over $70,000 following a notable warning from BlackRock and the Federal Reserve  describing “unprecedented” conditions.

Amid these market fluctuations, a renowned figure in the cryptocurrency community is wagering on a major strategic shift by China, while tech billionaire Michael Dell has fueled intense speculation that his company, Dell Technologies, might join the likes of MicroStrategy and Elon Musk’s Tesla in investing in Bitcoin.

Michael Dell, founder of the eponymous computer company in the 1980s, shared a thought on X, stating , “Scarcity creates value.” This prompted a response from MicroStrategy’s founder, Michael Saylor, who added , “Bitcoin is digital scarcity,” a remark that Dell then chose to repost, highlighting a mutual recognition of the concept within the context of Bitcoin.

Dell’s Bitcoin Tease 

Michael Dell, ranked as the world’s 14th richest person by Forbes, playfully engaged with the crypto community by posting an image  of Sesame Street’s Cookie Monster consuming Bitcoins.

This playful post follows a serious exchange with MicroStrategy’s Michael Saylor, reminiscent of a similar interaction  between Elon Musk and Saylor in late 2020. That dialogue preceded Musk’s announcement  that Tesla had purchased $1.5 billion in Bitcoin, although Tesla later sold most of its holdings and now maintains about 10,000 Bitcoins valued around $600 million.

Michael Saylor has been one of the most enthusiastic proponents of Bitcoin, acquiring 214,400 Bitcoins through MicroStrategy since summer 2020—approximately 1% of all Bitcoins that will ever be mined. He has actively promoted Bitcoin as a reserve asset for corporate treasuries.

Dell “Next Domino to Fall”

Given these developments, Marty Bent, a Bitcoin investor and managing partner at venture capital firm Ten31, speculated  :

“It seems that Dell may be the next domino to fall,” suggesting Dell Technologies might soon make a significant move into Bitcoin. Once the floodgates truly open and everyone begins to funnel into bitcoin, one can only imagine what that will do to price and the quality of the businesses that adopt this mindset.”

An anonymous and popular user on the social media platform X remarked  that “every billionaire in the world is going to realize the fastest way to build shareholder value and drive a massive premium on their stock is to adopt a Bitcoin standard.” This comment reflects a growing sentiment among some investors that integrating Bitcoin into business strategies could significantly enhance company valuations.

So far in 2024, Michael Dell has liquidated $2.1 billion of his holdings  but still retains 58% ownership of the company, providing him with substantial capital to potentially invest in the Bitcoin market. This comes at a time when rising US debt  could adversely affect the value of the US dollar in the future.

US debt
Credit: Econofact

Joe Consorti, an analyst at the Bitcoin Layer—a global macro research firm—suggested  that Bitcoin could benefit from the involvement of corporations like Dell Technologies. He points out that these companies could accumulate excess cash through the implementation of cost-cutting artificial intelligence technologies, providing them with additional resources to invest in Bitcoin.

Bitcoin Boosts Companies’ Market Caps

Since MicroStrategy began purchasing Bitcoin in the summer of 2020, its share price has surged nearly 1,000%, boosting the software company’s market capitalization to $26 billion. This dramatic increase illustrates the potential impact of incorporating Bitcoin into a company’s asset base.

Similarly, last month, Semler Scientific, a medical device maker, disclosed  a $40 million investment in Bitcoin, with plans for further purchases. This move resulted in an almost 60% rise in its stock price.

Semler chairman Eric Semler commented in a press release :

“We believe [Bitcoin] has unique characteristics as a scarce and finite asset that can serve as a reasonable inflation hedge and safe haven amid global instability.”

He also expressed a belief that Bitcoin could eventually challenge gold’s nearly $16 trillion market capitalization, noting :

“We also believe its digital, architectural resilience makes it preferable to gold, which has a market value of approximately 10 times that of Bitcoin.”

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