NVIDIA, the developer of the graphics processing unit (GPU), has reached a $5.5 million settlement with the Securities and Exchange Commission (SEC) over insufficient disclosures about the impact of crypto mining on the gaming industry of the company.
According to the SEC, the business failed to disclose that cryptocurrency mining was a major driver of the sale of its graphics processing unit (GPU) for subsequent quarters in the fiscal year 2018.
GPU was promoted and developed for gaming, but during 2017’s Bull Run, many people started overbidding GPU to mine cryptocurrency.
In a recent analysis of GPU price patterns, Mark D’Aria, CEO of Bitpro Consulting, a retailer of secondhand GPUs, stated that Gamers were not prepared to spend on these really high-end GPUs. Whereas miners were willing to pay whatever it took, Nvidia sold many more 3090s than they would have sold to simple gamers.
NVIDIA was responsible for fueling growth
SEC argued that NVIDIA was responsible for revealing the driver of growth in its Forms 10-Q, which is a quarterly financial performance report. It also mentioned how other elements of the company’s operations were driven by cryptocurrency demand, which SEC claimed that the connection to crypto mining was removed in the GPU sales section.
Without admitting or contesting the findings, NVIDIA agreed to pay the $5.5 million punishment.
