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

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.

Scarcity creates value

— Michael Dell (@MichaelDell) June 20, 2024

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.

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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About the Author

Teuta Franjkovic

Teuta is a seasoned writer and editor with more than 15 years of experience. She has expertise in covering macroeconomics and technology as well as the cryptocurrency and blockchain industries. She has worked for several publications as a journalist and editor, including Forbes, Bloomberg, CoinTelegraph, Coin Rivet, CoinSpeaker, VRWorld and Arcane Bear. Teuta began her professional career in 2005, working as a lifestyle writer at Cosmopolitan in Croatia. From there, she branched out to several other publications, covering mainly business and the economy. She then turned her attention to the world of cryptocurrency and blockchain, believing that crypto is among the most important inventions in the history of humanity. Her involvement in fintech began in 2014 and she has since lent her expertise in writing, editing and gathering information about the world of crypto, blockchain, NFTs and Web3. An all-round news hound, mentor, editor, and writer, Teuta enjoys teamwork and good communication. She holds a WSET2 diploma and has a thing for chablis, punkrock music and shoes. She also holds a double MA in Political science and Entrepreneurship.

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