Nvidia neglected to disclose that cryptocurrency mining accounted for a “substantial portion” of revenue increase from gaming processor sales. According to the US Securities and Exchange Commission (SEC), Nvidia Firm has agreed to pay $5.5 million to settle civil accusations that the technology corporation failed to adequately disclose the impact of crypto mining on its gaming business.
In a statement and charging order, the SEC stated that Nvidia failed to disclose that crypto mining constituted a “substantial portion” of their revenue gain from gaming processor sales in back-to-back quarters in fiscal 2018.
The corporation agreed to pay a $5.5 million civil penalty while failing to confirm or deny the SEC’s findings (roughly Rs. 42 crores). Nvidia’s Santa Clara, California, the spokesperson declined to comment.
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According to the SEC, Nvidia’s processors gained popularity in 2018 for crypto mining, which is the practice of obtaining crypto rewards in return for validating transactions on distributed ledgers. According to the regulator, Nvidia was aware of the material but did not discuss it with investors.
According to the SEC, these omissions misled investors and analysts who wanted to know how crypto mining might affect Nvidia’s business.