Nvidia has reached a settlement with the US Securities and Exchange Commission, accusing Team Green of failing to accurately indicate the extent to which the 2017-2018 crypto boom impacted the company’s financial results. Without acknowledging or denying the SEC’s findings, Nvidia agreed to pay a fine of $5.5 million.
In fiscal 2018, Nvidia’s gaming division experienced strong growth. However, according to the SEC, the company did not disclose that much of this increase was driven by the sale of GPUs to crypto miners. Based on this, given the volatility of crypto mining, investors would misunderstand the financial situation.
Nvidia’s GTX 1000 series was in high demand for crypto mining.
The SEC also notes that it is misleading to ignore this significant growth, as Nvidia has made statements about how other segments are growing due to crypto demand. This created the impression that the company’s gaming-related products were not significantly affected by crypto miners.
For Nvidia, that amount is probably more than a slap on the wrist, as the manufacturer made $3 billion in profits in 2018. For the fiscal year 2022, which ended Jan. 30, 2022, sales of no less than $26 billion were generated—in addition to net income of $9.7 billion.
Source: Securities and Exchange Commission
Source: Hardware Info
