Nvidia has to pay a fine of 5.5 million dollars
The 2018 mining boom has had an aftereffect: Nvidia has been fined 5.5 million US dollars in the United States. The context is the company's financial figures at the time, in which Nvidia minimized the importance of mining sales.
The present buzz surrounding cryptocurrencies such as Ethereum is not the first of its kind: in 2018, numerous crypto courses more than doubled in value, and there was significant demand for mining-capable hardware.
Miners were already targeting graphics cards back then, as they are today, and Nvidia's income increased at this time. Shortly thereafter, however, cryptocurrency prices plummeted, and Nvidia's revenues plummeted due to the loss of mining hardware sold.
This drop-in profits and the accompanying drop in the value of Nvidia's share price has now had an effect. Investors already sued the business in 2019 because Nvidia diverted mining income to the gaming sector, masking the mining boom's impact.
This action has since been settled: Nvidia has agreed to pay a 5.5 million US dollar penalty imposed by the US Securities and Exchange Commission (SEC).
Nvidia, on the other hand, made no simultaneous acknowledgment of guilt. The corporation appears to be taking no further action against the punishment.
This is understandable in light of Nvidia's current business figures: The corporation always made billions of dollars in profit in the fourth quarter. As a result, the fee is likely a minimal price to pay for the fact that the issue has been resolved.
The company's strategy has shifted in light of the current mining boom. Meanwhile, Nvidia has its own mining devices, and the company emphasizes that it has no control over whether Geforce graphics cards can be used for gaming or mining.
This does not eliminate the possibility of a drop in income if the mining bubble busts, but it does insulate Nvidia from future claims.