HomeCryptocurrencySEC fines NVIDIA $5.5 million for not disclosing crypto mining on...

SEC fines NVIDIA $5.5 million for not disclosing crypto mining on graphics cards

Previously, under the boom of cryptocurrency mining, the global computer independent graphics card was sold frantically, which made the graphics chip manufacturer NVIDIA suffer a lot. 

However, the U.S. Securities and Exchange Commission (SEC) accused NVIDIA of misleading investors by not truthfully disclosing the impact of the mining boom on the company’s performance. In response, NVIDIA agreed to pay $5.5 million to settle with the SEC.

The Wall Street Journal , Reuters and other foreign media reported that the SEC issued a press release on May 6 saying that it had reached a settlement with NVIDIA for $5.5 million. Mining demand is an important factor driving the growth of game graphics card sales.

The SEC pointed out in a press release that the cryptocurrency market rose sharply in 2017, and game graphics cards became the target of miners’ sweeping goods, but NVIDIA did not disclose such a sudden surge in the 10-Q forms in the second and third quarters of the 2018 fiscal year. Investors have been unable to obtain important information to assess NVIDIA’s future performance.

In the second quarter of fiscal 2018, NVIDIA’s “Gaming” division revenue increased by as much as 52% year-on-year, and the third quarter also increased by a sharp 25%. Analysts and investors at the time wanted NVIDIA to show how much of the revenue growth was driven by demand for cryptocurrency mining.

However, NVIDIA did not fully explain to investors, misleading investors, mistaking the fact that the revenue growth of NVIDIA’s e-sports division is mainly driven by the long-term stable momentum driven by the expansion of the industry (Organic Growth), rather than from the hot and cold cryptocurrency. mining needs.

NVIDIA has not acknowledged or denied the SEC’s findings, and a company spokesman declined to comment. NVIDIA shares fell 0.90% on the 6th to close at $186.75.

In 2017, the price of ether skyrocketed from less than $10 to more than $800. Miners found that the NVIDIA graphics card has excellent mining performance, and the graphics card using the NVIDIA Ampere architecture is very powerful for mining Ethereum, so they have snapped up NVIDIA graphics cards.

In 2021, NVIDIA will launch CMP series mining cards dedicated to mining. However, since its introduction, CMP mining truck sales have fallen sharply, and in the latest fiscal fourth quarter of 2022 (ending January 30, 2022), sales were only $24 million, much lower than the second quarter of fiscal 2022 (ending 2021). August 1, 2008) of $266 million.

Mehmet S. Kaya
Mehmet S. Kayahttps://teknonel.com
Mehmet is one of the administrator of Teknonel. As a software developer, he loves to share his knowledge in related topics. He is highly familiar with the editorial process from the inception of an article idea, through the iterative process, publishing, and performance analysis as well as product reviews.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Best Deals Today

Follow us on Social Media!

12FansLike
15,848FollowersFollow
13FollowersFollow
656SubscribersSubscribe

Related Articles

Explore More Articles

Construction Simulator 2022 How to Reset a Vehicle-main-min

Construction Simulator 2022: How to Reset a Vehicle

0
It is easy to stuck a vehicle in Construction Simulator 2022 as the game simulates many complex machineries and vehicles. At some point, you...
4 Best Premium gaming Mouse in 2022-min

4 Best Premium gaming Mouse in 2022

0
If in the past wireless gaming mice were not a good choice for gaming, today wireless gaming mice are just as good as their...
There might be more water in Earth's Mantle than on Surface main-min

There might be more water in Earth’s Mantle than on Surface

0
The deepest known trench on Earth is about 11 kilometers below sea level, however analysis of a diamond coming from the Earth's ultradeep areas...
Icarus How to Change Language-min

Icarus: How to Change Language

0
Icarus is a hardcore survival game that is mostly focused on session-based PvE mod for up to eight co-op players. Some users are finding...