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Nvidia to pay $5.5 million fine to SEC

The global chipmaker was fined for not revealing its source earnings previously.

In 2018, Nvidia revealed a significant growth in its revenue related to its gaming business. However, in a press release by the SEC, the chipmaker failed to recognize its earnings from crypto mining in its Form 10-Qs for fiscal 2018. The SEC even alleged that it failed to disclose to investors – and that Nvidia was aware of the boost in sales driven by crypto mining.

The press release has obliged the company to pay a $5.5 million fine in a cease-and-desist order to settle the allegations. Since then, Nvidia shares have been down by almost 1%, with the Nasdaq dropping by 1.15%, respectively.

NVIDIA’s omissions of material information about the growth of its gaming business were misleading given that NVIDIA did make statements about how other parts of the company’s business were driven by demand for crypto, creating the impression that the company’s gaming business was not significantly affected by crypto mining

As per the latest reports, in its fiscal fourth quarter ending on January 30, Nvidia’s Cryptocurrency Mining Processors (CMP) fell to $24 million from $105 million in the previous quarter. This means the chipmaker has faced a 77% decline in its revenue from mining operations.

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