Giải trí

Nvidia pays $5.5 million in fines due to cryptocurrency mining problems-Information Technology

Saturday, May 7, 2022 15:40 PM (GMT+7)

Nvidia will pay $5.5 million to settle with the SEC for not fully informing investors about the impact of cryptocurrency mining on graphics card demand.

Nvidia pays $5.5 million in fines due to cryptocurrency mining problems - 1

According to a U.S. Securities and Exchange Commission (SEC) filing, Nvidia did not say cryptocurrency mining boosted its revenue growth during the second and third fiscal quarters of 2018.

In 2017, the value of the Ether cryptocurrency increased from less than 10 USD to above 800 USD, causing the need for miners to buy more graphics cards. During Nvidia’s fiscal second quarter of 2018 (ended June 30, 2017), revenue from the graphics card business grew 52% year-over-year and 25% in the following quarter, but Nvidia did not disclose any details. reveals the impact of the crypto craze on this gain.

At the time, Nvidia’s sales team in China believed that the growth in demand for graphics cards for games was coming from “miners”, and Nvidia’s senior management wanted to go deeper into this market.

In 2021, Nvidia launched its own line of graphics cards called CMP for cryptocurrency mining purposes, and modified the software on regular graphics cards to prevent using this product for mining. The supply of Nvidia graphics cards in 2020 and 2021 are both pushed to the limit due to the need to upgrade PCs accompanied by the cryptocurrency craze.

However, sales of the CMP product line have plummeted since its launch. In Nvidia’s latest quarterly report, revenue from CMP was only at $ 24 million – extremely low compared to $ 266 million in August 2021.

You are reading the article Nvidia pays $5.5 million in fines due to cryptocurrency mining problems-Information Technology
at Blogtuan.info – Source: 24h.com.vn – Read the original article here

Back to top button