NVIDIA will pay a $5.5 million fine for concealing the number of GPUs sold to miners
U.S. Securities and Exchange Commission (SEC) announced that it accuses NVIDIA of inadequately disclosing information about the impact of cryptocurrency on the company’s business.
The commission claims that NVIDIA misled investors when it reported a large increase in gaming revenue – hiding the extent to which this success actually relied on cryptocurrency revenues. In other words, what share of GPUs sold to gamblers actually belongs to miners.
Obviously, from the point of view of investors, there is a big difference between the profit in a more or less predictable gaming market and a much more unstable and unpredictable cryptocurrency market.
The case concerns relatively recent events – the allegations are based on NVIDIA’s financial statements for the fiscal year 2018, i.e. sales growth in 2017, when the “boom” of Ethereum mining began.
It is noted that NVIDIA does not see any violations in this, but agrees not to hide such information and pay a fine of $5.5 million.