Nvidia has reported a sharp decline in sales of their cryptocurrency mining chips. The company’s chief executive, Jensen Huang, blamed the drop on “hundreds of scammers out there trying to game the system.”
Nvidia’s Q3 report reveals sharp decline in crypto mining chip sales. The “bitcoin mining council” is a group of companies that are looking to develop and sell ASIC-based chips for cryptocurrency mining.
Despite the fact that the value of digital currencies has risen dramatically this year, Nvidia has not earned any major profits from its cryptocurrency mining processor (CMP) line.
According to Nvidia’s third fiscal quarter report, the company’s CMP sales fell by 60% sequentially in the most recent quarter, with sales likely to fall even more in the fourth quarter.
CMP sales plummeted from $266 million in the second quarter to $105 million in the third quarter, according to Nvidia’s quarterly financial statement.
During the product’s lifetime, Nvidia claims to have produced $526 million in sales, or around 3% of the company’s total revenue of $19.27 billion. Gaming, data center, and professional visualization equipment sales account for almost all of the company’s revenue.
In terms of CMP sales revenue, the previous quarter was no different. Nvidia, according to Cointelegraph, outperformed Wall Street projections by producing a profit of nearly $6.5 billion. Despite this, it missed its profitability objective for the crypto-mining GPU line for the second quarter of 2021.
Nvidia CFO Colette Kress anticipated a $400 million sales for the company’s cryptocurrency mining processor line in Q2 during the first-quarter results call. Nvidia sold $266 million in CMPs in the second quarter, falling short by a third of its target.
The influx of cryptocurrency miners to Kazakhstan is apparently putting a strain on the country’s electricity supply.
Despite the fact that CMP has yet to acquire momentum, Nvidia’s profitability have not been hurt. This year, its value has increased by about 123 percent. According to the company’s results report on Wednesday, overall revenues were up 50% year over year, with $3.2 billion produced in a single quarter by selling graphics cards to gamers and PC builders.
Despite this, the company argues it can’t be positive that its rising graphics card sales aren’t related to the cryptocurrency industry. “Our GPUs are capable of crypto mining,” Kress said on a call with investors on Wednesday. “We don’t have insight into how much this effects our total GPU demand.”
Nvidia’s Q3 report reveals sharp decline in crypto mining chip sales. Nvidia has seen a significant drop in sales of its graphics cards for cryptocurrency mining, which is the main use case for the company’s GPUs. Reference: nvidia earnings.
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