The U.S. financial authority accused the company of hiding information about the impact of cryptocurrency on its gaming business and revenue.
Nvidia the multinational company specializing in the development of graphics cards, GPUs and computer technology, will pay a million-dollar fine to U.S. regulators for providing “a “one-size-fits-all” service to its customers.divulgaciones inadecuadas” about the relationship of their business with cryptocurrency.
The Securities and Exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Commission (SEC) of the United States has charged Nvidia of failing to properly disclose the impact that cryptocurrency mining was having on the company’s revenue. According to the regulator, the manufacturer failed to mention that its gaming business had benefited from the popularity of cryptocurrencies in two 2018 filings.
SEC charges and fines Nvidia
In a communiqué publicado este viernes, la agencia federal dijo la empresa no había indicado que la criptominería era “un elemento significativo de su crecimiento material de ingresos” based on sales of its graphics processing units, or GPUs, during fiscal 2018. The SEC filing reads:
[…]NVIDIA had information that this increase in game sales was largely due to cryptocurrency. Despite this, NVIDIA failed to disclose in its Forms 10-Q, as it was required to do, these significant earnings and cash cash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term. flow fluctuations related to a volatile business[…].
“ NVIDIA’s disclosure failures deprived investors of information critical to assessing the company’s business in a key market an area or arena, online or offline, in which commercial dealings are conducted. “, added Kristina Littman, Chief of the Cyber Assets and Cyber Assets Unit of the SEC’s Division of Enforcement. “ All issuers, including those seeking opportunities involving emerging technology, should ensure that their disclosures are timely, complete and accurate. ”.
According to the report, Nvidia ha llegado a un acuerdo con la SEC para una orden de cese y desistimiento, así como el pago de una multa de USD$ 5,5 millones para resolver las acusaciones.
Did you omit information out of ignorance?
According to Decrypt , Nvidia began mentioning cryptocurrency and its impact on its equipment manufacturing business in 2017. The media outlet cited a July 2017 presentation by the company in which it claims that its revenue from equipment sales grew 200% “ mainly due to the strong demand for GPU products for cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. mining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created. ”.
However, at the time, the company seemed to overlook the equally positive impact its gaming business was having as a result of the rise of Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. . According to the media, the graphics cards Nvidia GeForce GTX 580 which were marketed for video games and mainly between gamers , became very popular in 2018 among cryptominers.
Despite this, the CEO of Nvidia , Jensen Huang, alegó que era imposible saber cuánto de su hardware was being used by the miners. “ There’s no way for us to calculate that. “ said in November 2018 to VentureBeat talking about the impact of Bitcoin in your business. By that date, Nvidia reported losses in the millions after the price collapse in the cryptocurrency market.
The report of Decrypt goes on to note that in a quarterly report filed on May 18, 2018, for the three months ended April 29, 2018, Nvidia attributed the increase in gaming revenues to the eSports electronic sports, commonly known as e-sports, is a term used for digital gaming competition, in which players battle against each other in an individual or team-based format often in a competition or event that offers huge monetary rewards to the winners. Some e-sports games are also available in a single-player mode. .
Looking at the most recent data, cryptocurrency mining processor (CMP) revenue from Nvidia fell to $24 million in its fiscal fourth quarter, which ended January 30. This is a 77% decrease from the USD$ 105 million in the previous quarter, said CoinDesk quoting a company presentation.
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Article by Hannah Estefania Perez / DiarioBitcoin
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