Nvidia GPU sales for cryptocurrency mining fell 60%

Nvidia GPU sales for cryptocurrency mining fell 60%

Graphics card (GPU) chip maker Nvidia revealed that sales of its dedicated cryptocurrency mining hardware fell sharply throughout the third quarter of 2021.

Nvidia acknowledged the decline in sales of its GPUs for mining in a report recent. In it they specify that the earnings from sales of this type of equipment during the third quarter of this year were USD 105 million. Compared to the USD 266 million in profits generated by the sale of this same product in the previous quarter, the drop represents 60% of that amount.

Nvidia Executive Vice President and CFO Colette Kress does not bode well for Nvidia’s dedicated mining GPUs. According to her, it is very likely that the profits obtained from the sale of this type of hardware will continue to decline until the end of the last quarter of 2021.

Since the launch of Nvidia’s specialized mining graphics cards, they have delivered profits of USD 536 million. However, that amount only represents 3% of the USD 19 billion that the company has obtained in total in the same period of time.

Fortunately for Nvidia, the overall finances of the company have been highly favored in other niches that they cover. The gaming (video games), data centers, and professional display design are the areas that have given Nvidia the best profitability this year.

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Possible causes behind the drop in GPU sales for Nvidia mining

The main reason why Nvidia launched the CMP (Crypto Mining Processors) series of its graphics cards was to solve the shortage of these equipment, due to its high demand by cryptocurrency miners. Therefore, it is strange that they are not generating the expected profits in a year with Ethereum, and the market in general, on the rise.

One of the reasons that could have played against Nvidia graphics cards is China’s veto on mining. On the one hand, before the bans on cryptocurrency mining in China, this country was the one that contributed the highest amount of hash rates for networks such as Bitcoin.

Regarding this issue, in CriptoNoticias we reported when Spark Pool, one of the most important mining groups of Ethereum, decided to close its doors indefinitely after the measures announced by the Chinese Government. Therefore, the fewer active miners, the lower the demand for hardware for this purpose.

On the other hand, many of the miners in China decided to sell their equipment to recoup at least a part of the investment. As it is second-hand hardware, but with a useful life ahead, it can be more profitable to buy used equipment and invest in its maintenance. This would also detract from the purchase intention of new graphics cards.

Nvidia GPU sales for cryptocurrency mining fell 60%
Many of the miners who did not find it viable to emigrate from China after the veto, were forced to sell their equipment to recoup some of their investment. Source: LauraTara / pixabay.com

In addition to the possible causes mentioned, it should also be noted that Nvidia’s CMP series of GPUs are dedicated mining equipment. In other words, they do not have the versatility of a normal GPU, which can be used for both mining and graphics processing. This could affect your interest in miners looking to sell their equipment later to renew their rigs (computers with several GPUs dedicated to mining cryptocurrencies); since a GPU that processes graphics will have more potential buyers.

The Nvidia GPUs of the CMP series were announced in February of the current year, as we reported in CryptoNews. Depending on the model, they offered a mining power that averaged 26 MH / s and 86 MH / s. This according to the mining difficulty of the Ethereum network at that time.

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