Michael Dell, the CEO and founder of Dell Technologies, has sparked interest with a cryptic message hinting at the possibility of his company exploring Bitcoin (
BTC
) as an investment opportunity. On June 21, Dell tweeted, “Scarcity creates value,” a phrase often linked to Bitcoin due to its limited supply of 21 million tokens and increasing demand. This tweet caught the attention of Michael Saylor, a vocal advocate for Bitcoin as a corporate treasury asset. Dell’s subsequent repost of Saylor’s reply, along with an image of Cookie Monster consuming Bitcoin, has led to speculation that he may consider investing in the cryptocurrency in the future, either from his personal portfolio or through his company.
This tweet comes after Dell’s recent financial moves, setting the stage for a potential Bitcoin investment. Dell Technologies’ stock has grown nearly fivefold since its return to the public market in December 2018. Over the past 18 months, the company’s Class C common stock has surged from $40 to $145 per share, quadrupling Dell’s net worth to around $120 billion, making him the 14th richest person globally.
So far, in 2024, Dell has cashed out $2.1 billion while retaining 58% of the company’s ownership, leaving him with excess capital to potentially invest in the Bitcoin market. This is particularly relevant in light of rising U.S. debt, which may have a negative impact on the U.S. dollar’s value in the future.
Joe Consorti, an analyst at Bitcoin Layer, a global macro research firm, argues that Bitcoin could benefit from corporations like Dell Technologies, as they may have excess cash due to the emergence of cost-cutting artificial intelligence technologies. He suggests that holding even a small percentage of the balance sheet in Bitcoin, such as 1%, could provide a significant edge over competitors. For example, if Dell Technologies allocates 1% of its $5.83 billion cash reserves to Bitcoin, amounting to $58.3 million, it could potentially see this investment grow to $118.7 million in just one year, based on Bitcoin’s historical annualized returns.
Historical data suggests that corporations can greatly benefit from Bitcoin investments. MicroStrategy, led by Michael Saylor, has seen a significant profit from its strategic BTC acquisitions in recent years. On the other hand, top investors like Warren Buffett have refrained from buying Bitcoin, missing out on potential returns. In conclusion, every investment and trading move involves risk, and readers should conduct their own research when making a decision.