Nvidia Failed to Disclose Crypto Mining Revenue Impact in 2018, SEC Says
Without admitting or denying the charges, the chipmaker agreed to pay a $5.5 million dollar fine to settle the affair.
May 6, 2022 at 2:32 p.m. UTCUpdated May 11, 2023 at 5:41 p.m. UTC
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The U.S. Securities and Exchange Commission (SEC) said that chip giant Nvidia (NVDA) failed to disclose that crypto mining was a significant contributor to its 2018 revenue.
- In two of Nvidia’s Form 10-Qs for fiscal 2018, Nvidia reported material growth in revenue within its gaming business, said the SEC in a press release. However, continued the agency, Nvidia was aware – but failed to disclose to investors – that the boost in sales was, in significant part, driven by crypto mining.
- “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,” said the SEC.
- Nvidia has agreed to a cease-and-desist order and the payment of a $5.5 million fine to settle the SEC’s allegations.
- Looking at more recent data, revenue for Nvidia’s Cryptocurrency Mining Processors (CMP) fell to $24 million in its fiscal fourth quarter ending Jan. 30, a 77% decline from $105 million in the previous quarter, according to its filings.
- Nvidia shares are down modestly on Friday morning alongside a 1.15% decline for the Nasdaq.
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Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets