NVIDIA fined $5.5M for failing to disclose crypto mining impact2022-05-09 18:08 by Daniela
Nvidia has agreed to pay $5.5 million in fines to the United States Securities and Exchange Commission to settle charges that it failed to disclose how many of its GPUs were being sold for cryptocurrency mining, the agency announced today.
The financial watchdog announced the charges on Friday, May 6, claiming that Santa Clara, California-based NVIDIA misled investors by failing to report that crypto mining had generated a significant amount of revenue growth in two consecutive quarters during its 2018 fiscal year from the sale of its graphics processing unit (GPUs) designed and marketed for gaming.
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 on fiscal year 2017, by as much as 52% in one quarter. Those omissions misled investors and analysts who were interested in understanding the impact of cryptomining on Nvidia's business, the SEC said.
GPUs - used for PC gaming, video editing and other graphics-intensive activities - became hard to track down starting a few years ago as the price of key crypto currencies reached new highs. The cryptocurrencies are mined using powerful computers, often equipped with multiple GPUs.
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