GPUs have been nearly impossible to come by over the past couple of years. While a lot of those shortages can be attributed to the pandemic, the cryptocurrency business is also partially responsibles, as powerful GPUs are often used to mine currency. Now, GPU manufacturer Nvidia is being fined by the SEC for $5.5 million, as the organization states Nvidia hid its GPU sales to cryptominers.
According to a recent filing to the U.S. Securities and Exchange Commission, Nvidia is being penalized for not disclosing its GPU sales to crypto miners during consecutive quarters during the fiscal year 2018. This meant that investors weren’t given the full story, and were led to believe that Nvidia’s growing GPU revenue was primarily coming from gamers
When Nvidia reported financial earnings for the fiscal year 2018, the company attributed the increase in GPU sales to its gaming business, despite the fact that it knew cryptominers accounted for a large chunk of product sales, according to the SEC filing.
It’s no secret that Nvidia GPUs are popular among cryptominers, with images and videos of massive mining farms going viral on social media, as gamers continue to be frustrated with how hard it is to acquire a new graphics card. We’ll continue to monitor the situation at Nvidia and provide any necessary updates on the story.