NVIDIA fined $5.5 million for concealing graphics sales to minors
The United States Securities and Exchange Commission (SEC) has fined NVIDIA $5.5 million. for failing to disclose in its quarterly income statements that in fiscal 2018 it received significant revenue from the cryptocurrency mining sector. In other words, and in case it wasn’t clear, that NVIDIA hid revenue from selling graphics to minors and for that he was fined by the SEC.
Since the fine is for incorrect or unreported sales for fiscal year 2018, this does not stem from the current and protracted crisis of rising prices and chart shortages, but from the first one that began in 2017. This conflicts with the policy that NVIDIA had in front of the public, when it came to asking that they stop selling graphics to minors and that gamers were the first thing for her.
The green giant said it has seen only material growth in its video game-focused business, but SEC rules require companies to disclose the amount of revenue received from volatile companies so investors can make an informed decision to determine this. whether the actions taken or carried out by the company are truly indicative of its future performance.
The SEC also found that “NVIDIA’s omission of important information about the growth of its gaming business was misleading, as NVIDIA made claims about how other parts of the company’s business were driven by demand for cryptocurrencies, giving the impression that gaming business was not significantly impacted by the crypto mining.”. These SEC filings show NVIDIA’s double game, which apparently took advantage of the luscious mining activity while asserting, in front of the gallery, that gamers were its priority.
The first crisis caused by cryptocurrency mining broke out in 2017, when this sector began to accumulate a large number of dedicated charts which ended up inflating prices, such that at the beginning of 2018 we saw how an RX 580 came to cost over $400, a totally indecent amount for a mid-range product and more considering the audience it should be aimed at. NVIDIA said in February 2018 that in the fourth quarter of the previous year, it achieved record revenue of $2.91 billion, which represented a 34% increase. At that time, Bitcoin had an approximate value of around $9,500.
If NVIDIA agreed to pay the fine filed by the SEC, it stands to reason that the US regulator has strong evidence that the company hid sales and associated revenue generated from selling graphics cards to minors. At the end of the day, these are businesses and what businesses are after is maximum profit.