Key Points
- Michael Dell, CEO of Dell Technologies, has recently sold $1.2 billion of Dell Technologies stock.
- The crypto community is speculating whether Dell will invest some of these funds into Bitcoin.
Michael Dell, the founder and CEO of Dell Technologies, has recently sold a total of 10 million shares in his company. This marks his second major stock sell-off in September.
According to the US SEC filing on September 20, Michael Dell liquidated $1.2 billion of Dell Technologies stock. Despite this, he still holds over 16.91 million shares worth more than $2 billion.
Will Dell Invest in Bitcoin?
Given his recent pro-crypto stance, the crypto community is curious if Dell will invest some of the liquidated funds into Bitcoin. The reasons behind Dell’s large-scale sell-off remain unclear.
Earlier this year, Michael Dell tweeted “Scarcity creates value”, a phrase often linked with Bitcoin due to its limited supply of 21 million tokens and increasing demand. Bitcoin advocate Michael Saylor responded by describing Bitcoin as “Digital Scarcity”. Dell later posted an AI-generated image of Sesame Street’s Cookie Monster enjoying Bitcoin-themed cookies.
Despite this exchange, there have been no significant moves from Dell towards Bitcoin. However, many global leaders are considering Bitcoin as a hedge against current economic uncertainties.
Institutional inflows into spot Bitcoin ETFs have surged following the mid-September Fed rate cuts. Tech leaders like Mark Cuban and Elon Musk are known crypto investors. If Dell follows suit, it could provide a significant boost to Bitcoin and the broader crypto market.
Will Dell Technologies Hold Bitcoin on its Balance Sheet?
Around the world, companies are starting to hold Bitcoin on their balance sheets, following MicroStrategy’s example. Elon Musk’s Tesla was an early Bitcoin investor in 2021. It remains to be seen if Dell Technologies will adopt a similar approach. Meanwhile, public-listed firms worldwide continue to buy more Bitcoin. For instance, Japan’s Metaplanet recently announced the purchase of 107 Bitcoin as it gears up for the ‘Uptober’ rally.
Dell Technologies reported a 9% revenue surge in the second quarter, with its servers and networking revenue increasing by 80% from the previous year. The company’s stock has risen 58.5% this year, according to Google Finance. On September 24, Dell Technologies re-entered the S&P 500, which tracks the 500 largest publicly traded companies in the US.
The tech giant is benefiting from the growing interest in artificial intelligence (AI) firms, driven by the rising demand for servers capable of handling AI application workloads.
