The U.S. Securities and Exchange Commission (SEC) has found that chip giant Nvidia (NVDA) failed to disclose that cryptomining was a material contributor to its 2018 revenue.
- In two of Nvidia's fiscal 2018 Forms 10-Q, the SEC said in a press release, Nvidia reported substantial revenue growth in its gaming business. However, the agency added, Nvidia knew that a significant portion of the revenue growth was due to cryptocurrencies, but did not disclose that to investors.
- "NVIDIA's omissions of material information about the growth of its gaming business were misleading because NVIDIA made statements about how other parts of the company's business were driven by demand for cryptocurrencies, creating the impression that the company's gaming business was not significantly impacted by cryptomining," the SEC said.
- Nvidia has agreed to a cease-and-desist order and to pay a $5.5 million fine to settle the SEC's allegations.
- Nvidia's cryptocurrency mining processor (CMP) revenue fell to $24 million in the fourth quarter ended Jan. 30, down 77% from $105 million in the previous quarter, according to documents.
- Shares of Nvidia fell slightly Friday morning, while the Nasdaq was down 1.15%.