Today, it’s no secret that GPU manufacturers profited from day one Cryptocurrency mining boom, but NVIDIA is currently facing some consequences as a result. The company is pay $5.5 million to settle allegations by the US Securities and Exchange Commission that it failed to disclose that cryptocurrency mining played a “significant” role in the skyrocketing revenue from mining. sold GPUs throughout fiscal 2018. NVIDIA allegedly violated both the Securities Act and the Securities Exchange Act by failing to disclose that its success was tied to a “volatile business” , potentially misleading investors, who might think this is the result of the company’s usual game-focused strategy.
The SEC order also said NVIDIA misled investors by admitting that demand for the cryptocurrency affected other aspects of their business at the time. According to the regulator, that implied mining is not an important part of the success of the games business it has for other products. NVIDIA will be subject to the cease-and-desist order, preventing it from breaking the rules in the future.
An NVIDIA spokesperson declined to comment. However, the brand increasingly sees crypto mining as an obligation to gaming GPU sales rather than a benefit. It started limited mining capacity RTX GPUs in 2021 in an attempt to free up cards for the intended audience. The company even launched dedicated mining card that year in an effort to satisfy crypto fans without cutting demand for its GeForce line of GPUs.
The payout is tiny for a company that most recently made $7.6 billion quarter-report. With that said, a modest settlement is somewhat to be expected given the unsuccessful past claim efforts. Tom’s Hardware note in March 2021, a judge dismissed a lawsuit alleging NVIDIA misled investors – it’s no secret that many GPUs are reserved for cryptocurrency miners, the judge ruled. While the SEC has found misconduct, it will be even more difficult to prove that NVIDIA has caused enough damage to warrant a large penalty.
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