Nvidia to Pay $5.5 Million Fine to SEC for Omitting Crypto Mining Information

Texas could raise funds through NFT and harness 'abundant' energy to mine Bitcoin

Nvidia to Pay $5.5 Million Fine to SEC for Omitting Crypto Mining Information For Hannah Perez

The US financial authority accused the company of withholding information about the impact of crypto mining on its gaming business and revenue.

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Nvidiathe multinational specialized in the development of graphics cards, GPUs and computer technology, will pay a millionaire fine to US regulators for providing “improper disclosures” about the relationship of his business with crypto mining.

The United States Securities and Exchange Commission (SEC) accused Nvidia of not properly disclosing the impact that cryptocurrency mining was having on the company’s revenue. According to the regulator, the manufacturer failed to mention that its gaming business had benefited from the popularity of cryptocurrencies in two filings in 2018.

SEC charges and fines Nvidia

In a release published this Friday, the federal agency said the company had not indicated that crypto mining was “a significant element of your material income growthbased on sales of its graphics processing units, or GPUs, during fiscal year 2018. The SEC report reads:

[…]NVIDIA had information that this increase in game sales was largely due to crypto mining. Despite this, NVIDIA failed to disclose on its Forms 10-Q, as it was required to do, these significant earnings and cash flow fluctuations related to a volatile business.[…].

NVIDIA’s disclosure failures deprived investors of information critical to evaluating the company’s business in a key market”, added Kristina Littman, Chief of the Cyber ​​and Cyber ​​Assets Unit of the SEC Enforcement Division. All issuers, including those seeking opportunities involving emerging technology, must ensure that their disclosures are timely, complete and accurate.”.

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According to the report, Nvidia has reached an agreement with the SEC for a cease and desist order, as well as the payment of a fine of USD$5.5 million to settle the accusations.

Did you omit information due to ignorance?

In accordance with Decrypt, Nvidia began mentioning crypto mining and its impact on its equipment manufacturing business in 2017. The outlet cited a July 2017 presentation from the company that its revenue from equipment sales grew 200%.”mainly due to strong demand for GPU products aimed at cryptocurrency mining”.

However, at the time, the company seemed to ignore the equally positive impact its gaming business was having due to the rise of Bitcoin. According to that medium, graphics cards Nvidia GeForce GTX 580which were marketed for video games and mainly among gamersbecame very popular in 2018 among crypto miners.

Despite that, the CEO of NvidiaJensen Huang, claimed that it was impossible to know how much of his hardware it was being used by miners. There’s no way for us to calculate thatsaid in November 2018 to VentureBeatspeaking about the impact of Bitcoin in your business. For that date, Nvidia reported millionaire losses after the collapse of prices in the cryptocurrency market.

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The report of Decrypt continues by pointing out that in a quarterly report submitted on May 18, 2018, corresponding to the three months ending on April 29 of that year, Nvidia attributed the rise in gaming revenue to eSports.

Looking at the most recent data, cryptocurrency mining processors (CMP) revenue from Nvidia they fell to $24 million in its fiscal fourth quarter, which ended January 30. This is a 77% decrease in the USD$105 million in the previous quarter, said CoinDesk citing a company presentation.


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Article by Hannah Estefanía Pérez / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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