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the cliff-notes:
- Michael Dell hints at a Bitcoin strategy, potentially for personal or corporate investment
- Dell stock has soared YTD, with Michael Dell cashing out $2.1 billion while retaining 58% ownership
- Dell is sitting on $5.83 billion in cash, potentially considering Bitcoin as a strategic reserve asset amidst the AI boom
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Another major CEO in the United States is throwing his hat into the ring when it comes to purchasing Bitcoin. Whether it's on his personal balance sheet or on behalf of his company, we don't know. But I'm going to take you through what he said, and then I'll take you through some of the financials of not just himself, but also his company.
Michael Dell, the founder and CEO of Dell Technologies who is worth just shy of $110 billion, tweeted yesterday: "Scarcity creates value." Very interesting. That sounds like a line that you would hear in any number of Bitcoin books, right?
And who but Michael Saylor, the originator of the Bitcoin corporate treasury strategy himself, replied underneath it.
Dell went on to repost Saylor's reply confirming that yes, this tweet was indeed about Bitcoin. And to top it all off, he tweeted a photo of Cookie Monster eating Bitcoin, clearly having a little bit of fun and leaving more people eager to see what Mr. Dell is planning when it comes to Bitcoin as an asset, whether personal ownership or a spot on Dell's balance sheet.
Now, let's dig into the numbers.
Michael Dell's stock holdings are listed below. He sold 25 million shares of Dell Class A stock and 2.84 million shares of Class C common stock, for a grand total of roughly $2.1 billion in cash taken out. He still retains 58% ownership of Dell stock:
Dell has appreciated almost 5-times over since it went public again in December 2018, and in that time, Michael Dell's net worth has had a 4-fold increase. He is now the 14th richest man in the world, according to Forbes' real-time billionaires index. Take a look at the eyewatering growth of Dell's Class C common stock over the last 18 months in particular, from $40 per share to $145:
And here are all 16 of Michael Dell's selling events of Dell stock since the start of the year, marked in red. He's been cashing out between $120 to $130/share:
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For one of the largest computer manufacturers globally, allocating to bitcoin as a strategic reserve asset is a savvy move.
As AI sweeps the globe and these companies stand be more cash-rich than ever before, holding Bitcoin as even a small percentage of their balance sheet can set them apart from their competitors. Outsized returns on their reserves during this AI boom will provide a further buffer for capital allocation during a time when spending and scaling in computer manufacturing haven't been this rapid or hotly contested in decades. Dell is sitting on $5.83 billion in cash to make that happen:
Whether Michael Dell decides to build a position in Bitcoin personally, for Dell Technologies, or for both, the takeaway is clear: bitcoin on the balance sheets of the world's largest companies is growing in popularity.
The Sharpe ratio doesn't lie. Bitcoin is the single best asset to position yourself in for outsized risk-adjusted returns over any multi-year timeframe, and you're simply not working in the best interest of your shareholders if you ignore this without reason.
Final thought: the market price may be in the trenches at the moment, but Bitcoin has never been stronger.
Take it easy,
Joe Consorti
Theya is the world's simplest Bitcoin self-custody solution. With our modular multi-sig vaults, you decide how to hold your keys.
Whether you want all your keys offline, shared custody with trusted contacts, or robust mobile vaults across multiple iPhones, it's Your Keys, Your Bitcoin.
