Read from kotaku
Nvidia, producer of graphics cards since prehistoric times, has just been fined $5.5 million by the U.S. Securities and Exchange Commission for failing to divulge to investors how much of its 2017-18 revenue came about from crypto-miners.
This 5.5 million dollars is a settlement made with the SEC regarding “Inadequate Disclosures about Impact of Cryptomining.” This specific case dates back to 2017, a time when the planet-ending antics of crypto-diggers made it so very hard for everyone else to buy a new graphics card, before the exact same people and a global chip shortage made it even worse.
In 2018 filings, Nvidia reported $9.714 billion in revenue, of which half was credited to “Gaming,” but without properly indicating the role crypto played in these figures. Said numbers were dramatically up in fiscal year 2017, by as much as 52% in one quarter.
The SEC’s report states, “during consecutive quarters in Nvidia’s fiscal year 2018, the company failed to disclose that crypto-mining was a significant element of its material revenue growth from the sale of its graphics processing units (GPUs) designed and marketed from gaming.”
Some of the company’s sales personnel, in particular in China, reported what they believed to be significant increases in demand for Gaming GPUs as a result of crypto-mining. In addition, while the company could not track when and which specific Gaming GPUs were purchased for the purpose of crypto-mining, company personnel estimated using various assumptions that the impact of crypto-mining was at levels that would indicate crypto-mining was a significant factor in the year-over-year growth in Gaming revenue during the relevant period.
The SEC’s order also finds that Nvidia’s omissions of material information about the growth of its gaming business were misleading given that Nvidia did make statements about how other parts of the company’s business were driven by demand for crypto, creating the impression that the company’s gaming business was not significantly affected by crypto-mining.
Nvidia, producer of graphics cards since prehistoric times, has just been fined $5.5 million by the U.S. Securities and Exchange Commission for failing to divulge to investors how much of its 2017-18 revenue came about from crypto-miners.
This 5.5 million dollars is a settlement made with the SEC regarding “Inadequate Disclosures about Impact of Cryptomining.” This specific case dates back to 2017, a time when the planet-ending antics of crypto-diggers made it so very hard for everyone else to buy a new graphics card, before the exact same people and a global chip shortage made it even worse.
In 2018 filings, Nvidia reported $9.714 billion in revenue, of which half was credited to “Gaming,” but without properly indicating the role crypto played in these figures. Said numbers were dramatically up in fiscal year 2017, by as much as 52% in one quarter.
The SEC’s report states, “during consecutive quarters in Nvidia’s fiscal year 2018, the company failed to disclose that crypto-mining was a significant element of its material revenue growth from the sale of its graphics processing units (GPUs) designed and marketed from gaming.”
Some of the company’s sales personnel, in particular in China, reported what they believed to be significant increases in demand for Gaming GPUs as a result of crypto-mining. In addition, while the company could not track when and which specific Gaming GPUs were purchased for the purpose of crypto-mining, company personnel estimated using various assumptions that the impact of crypto-mining was at levels that would indicate crypto-mining was a significant factor in the year-over-year growth in Gaming revenue during the relevant period.
The SEC’s order also finds that Nvidia’s omissions of material information about the growth of its gaming business were misleading given that Nvidia did make statements about how other parts of the company’s business were driven by demand for crypto, creating the impression that the company’s gaming business was not significantly affected by crypto-mining.
