NVIDIA fined $5.5 million for hiding graphics sales to miners

nvidia 1000x600.jpg
nvidia 1000x600.jpg

The United States Securities and Exchange Commission (SEC) has fined NVIDIA $5.5 million. for not disclosing in its quarterly income statements that during fiscal year 2018 it had received significant income from the cryptocurrency mining sector. In other words, and in case it has not been clear, that NVIDIA hid income from sales of graphics to miners and for that it has been fined by the SEC.

Seeing that the fine corresponds to incorrectly or unreported sales for fiscal year 2018, this does not derive from the current and prolonged crisis of increased prices and shortage of graphics, but from the first one that began in 2017. This collides with the policy that NVIDIA had in front of the public, when it came to ask that they stop selling graphics to miners and that the players were the first thing for her.

The green giant stated that it only saw material growth in its video game-oriented business, but SEC rules require companies to disclose the amount of income received from volatile businesses so that investors can make an informed decision to determine. if the actions taken or carried out by the company are really indicative of its future performance.

The SEC has also found that “NVIDIA’s omissions of material information about the growth of its gaming business were misleading, as NVIDIA made statements about how other parts of the company’s business were driven by demand for cryptocurrencies, creating the impression that the gaming business was not significantly affected by crypto mining.. These SEC statements show NVIDIA’s double game, which has apparently taken advantage of the succulent mining business while, facing the gallery, saying that players were its priority.

The first crisis caused by the mining of cryptocurrencies broke out in 2017, when this sector began to amass a large number of dedicated graphics that ended up inflating prices, in such a way that at the beginning of 2018 we saw how an RX 580 came to cost more than 400 dollars, a totally indecent amount for a mid-range product and more seeing the public to which it should be directed. NVIDIA stated in February 2018 that in the fourth quarter of the previous year it had a record revenue of 2.91 billion dollars, which represented an increase of 34%. At that time, Bitcoin had an approximate value of about 9,500 dollars.

If NVIDIA has agreed to pay the fine filed by the SEC, it stands to reason that the US regulator has strong evidence that the company hid the sales and related revenue generated from the sale of graphics cards to miners. At the end of the day, these are businesses and what companies are looking for is maximum profit.

Previous articleElderly Dubliners call on builders to help them downsize to smaller homes
Next articleMet Eireann forecasts glorious sunny spells as two weeks of heat to engulf country
Brian Adam
Professional Blogger, V logger, traveler and explorer of new horizons.