One of the largest computer hardware manufacturers in the world, NVIDIA, has been fined $5.5 million by the US Securities and Exchange Commission (SEC).
NVIDIA in contact with the SEC
NVIDIA has been fined for failing to provide sufficient details about the impact crypto mining has had on its gaming business. According to the filing, NVIDIA had not disclosed to its investors that the creation and sale of crypto-ready GPUs was a major factor in the company’s revenue growth. This happened in the 2018 fiscal year, when Bitcoin’s value rose sharply for the second time.
NVIDIA eventually said it will abide by the SEC’s ruling. She agreed to pay the fine. The $5.5 million is only a pittance for the company. The company reported revenue of $9.7 billion and a profit of $3 billion in 2018. As of 2021, the company reported a profit of $9.7 billion.
This is by the way not the first time that NVIDIA comes into contact with this particular case. In 2021, it dismissed a case from California’s Northern District Court. At the time, it stated that the plaintiff had no evidence whatsoever to prove that NVIDIA underreported revenue.