In a significant move, tech giants Palantir Technologies Inc. (PLTR) and Dell Technologies Inc. (DELL) are poised to join the prestigious S&P 500 index. This inclusion is typically a positive sign for stocks, as it often leads to increased trading volume and liquidity due to purchases by index funds, ETFs, and other funds mirroring the index. However, what’s particularly intriguing is the recent interest in Bitcoin shown by the leaders of these companies.
Palantir founder Peter Thiel has a long-standing relationship with Bitcoin. His venture capital firm, Founders Fund, generated a whopping $1.8 billion from Bitcoin investments before the market downturn in 2022. The firm then added another $100 million worth of Bitcoin to its portfolio in 2023 when the cryptocurrency was trading below $30,000. Thiel himself views Bitcoin as a “moderately big invention.” During a recent episode of the Joe Rogan Experience podcast, he stated, “We can debate whether it was good or bad, but it was a pretty big deal and was systematically underestimated for at least the first 10-11 years.”
Michael Dell, the founder and CEO of Dell Technologies, has expressed his interest in Bitcoin through cryptic social media interactions. It all began with a tweet featuring a digitally altered image of Sesame Street’s Cookie Monster, depicted as consuming Bitcoin instead of cookies. Dell further added “Fascinating Bitcoin” in response to BlackRock CEO Larry Fink’s statement recognizing Bitcoin as a legitimate financial asset. More recently, the billionaire commented “Enjoy Bitcoin” in response to a Twitter exchange. These posts have led many Bitcoin supporters to speculate that Dell Technologies, similar to MicroStrategy, might consider adding Bitcoin to its balance sheet in the future.
The news of Palantir and Dell’s inclusion in the S&P 500 has already had a significant impact on their stock prices. Dell shares surged by 3.83%, while Palantir’s stock skyrocketed by 14% on Monday following the announcement. Meanwhile, Bitcoin itself saw a 4% increase in the last 24 hours, trading at $57,200.41. The growing interest from prominent figures like Thiel and Dell in Bitcoin could potentially fuel further growth in the cryptocurrency market.
