The US Securities and Exchange Commission (SEC) has fined Nvidia Corp $5.5m as a penalty for failing to disclose revenue from cryptocurrency mining operations.
As one of the biggest companies to produce the hardware necessary to obtain digital assets, it’s not surprising that Nvidia got involved with mining on the ground.
SEC objected to the chipmaker not disclosing its earnings properly. In two quarters of 2018, the company failed to communicate that a significant chunk of its revenue came from crypto mining operations.
SEC crypto enforcement team head Kristina Littman offered a statement detailing the ruling. “All issuers, including those that pursue opportunities involving emerging technology, must ensure that their disclosures are timely, complete, and accurate”, she said.
According to the regulator, information about surging demand from miners for more mining equipment was also not disclosed to SEC.
However, demand for crypto mining gear has not exactly been a godsend for anyone. While Nvidia has been able to expand into a new market, the company has similarly faced supply shortages due to growing demand and disrupted supply chains which have sent the prices of hardware and electronics up.
Interestingly, stocks for chipmakers surged rapidly in the crypto boom build-up to 2017, which died with the prices of Bitcoin tumbling.
The new Bitcoin fever has lasted longer, putting a strain on Nvidia’s capabilities to deliver. The chipmaker has been apparently saving up some of the produced units for itself.
If you would much rather spend your crypto at gaming sites rather than mine it yourself, we recommend visiting Bitcasino, 1xBit or FortuneJack.