Nvidia Corporation, 2018‘also cryptocurrency miningfor hiding the income from $5.5 millionness punishmentor sentenced.
The American tech hardware company was found guilty of violating the Securities Exchange Act and misleading investors during the 2017-2018 cryptocurrency boom.
In a statement from the official authorities, Nvidia’s “crypto-mining means that graphics processing units designed and marketed for gaming (GPU‘s) is an important element of the increase in material income resulting from the sale of ‘s.
Gaming GPUs Used in Crypto Mining
As you know, 2017 was a year of historical peaks for digital currencies. While the markets witnessed the unprecedented growth of the crypto market, the mining industry also saw extreme growth. This caused excessive demand for high-end GPUs and eventually led to shortages.
Back then, GPUs were one of the most effective tools for mining cryptocurrencies. As prices hit new highs, the explosion of crypto mining has caused Nvidia’s market cap to nearly triple.
When the price of Bitcoin fell in 2018, demand for GPUs also fell, resulting in a drastic drop in Nvidia’s revenue in the last quarter of 2018.
SEC Aware of Everything
SECfound that Nvidia’s gaming division experienced a large revenue increase in its 2018 quarterly revenues, but the necessary disclosures were not made to the shareholders about the mining sales that contributed to this increase.
Investors, on the other hand, accused Nvidia of falsely reporting that demand for the GPU comes from gamers, not cryptocurrency miners. As a result, the decline in Nvidia’s revenues and stocks witnessed in 2018 caused investors to suffer losses.
According to the SEC, Nvidia misled customers about the growing gaming industry and did not share accurate information about the actual sources of income. As a result, the company accepted the “stop and go” order and agreed to pay a $5.5 million fine. The SEC has not made any announcements as to when the penalties will be enforced.