NVIDIA fined $5.5 million for failing to disclose cryptomining profits
NVIDIA Corporation will have to pay $5.5 million to the Security and Exchange Commission (SEC) for failing to disclose that part of its revenue growth came from selling gaming GPUs for crypto mining purposes. According to the SEC, the company failed to disclose this information for two consecutive quarters for the fiscal year of 2018.
During this time, the company remained vague in its fiscal reporting, only stating that it had revenue growth in its gaming business. By purposely omitting the reason for the increase, investors are left in the dark, unable to make clear decisions with regard to future investments. The omission also raised flags because despite keeping the reason for growth under wraps for its gaming business, NVIDIA was willing to attest to the revenue generated from crypto in other areas of its business.
For context, crypto mining became extremely popular over the course of the last few years but the increased difficulty in mining some of the more popular coins such as Bitcoin and Ethereum has led some to question the viability of mining in the long term. Not to mention, some cryptocurrencies are moving away from the current method of mining, which could become obsolete. This is a good thing, as it reduces our carbon footprint, and it’s an even better thing for gamers as it means that it should be easier for them to get their hands on higher-end graphics cards.
A quick check on Best Buy for NVIDIA graphics cards shows a lot of different options in stock. Naturally, the prices aren’t the cheapest, but things have started to normalize over the past month. Lastly, despite NVIDIA paying the settlement, it is not admitting to any wrongdoings by doing so, and the company has agreed to not repeat the same mistake again.