Cryptocurrency

SEC Fines Nvidia $5.5M USD Over 'Inadequate' Crypto Mining Disclosure

Claiming that the company deprived investors of critical information.

Cryptocurrency

SEC Fines Nvidia $5.5M USD Over 'Inadequate' Crypto Mining Disclosure

Claiming that the company deprived investors of critical information.

On Friday, May 6, the SEC slapped GPU chip production powerhouse Nvidia with a $5.5 million USD fine. This charge comes as a result of “inadequate disclosures” to its investors in regard to the company’s 2018 sales performance.


According to the charge, Nvidia did not properly inform its investors that crypto mining was a significant part of its revenue growth from the sale of its graphics processing units (GPUs), which are designed and marketed for gaming purposes. The charge also states that investors should have been made aware of significant earnings and cash flow related to a volatile sector of the business — that way it would not appear that past performance was indicative of future performance.

In regards to the case, the chief of the SEC Enforcement Divison’s Crypto Assets and Cyber Unit, Kristina Littman, said: “All issuers, including those that pursue opportunities involving emerging technology, must ensure that their disclosures are timely, complete, and accurate.”

The GPUs in question have recently experienced a global shortage due to shipping and production costs. The product is a specialized electronic circuit that is designed to accelerate the creation of images and is intended for output to a display device. This tech is often used in mobile phones, personal computers, gaming consoles, cryptocurrency mining rigs, and even Tesla vehicles. Just last year, the GPU market was valued at $25 billion USD, with projections of $246 billion USD by 2028.

Nvidia has not admitted to any wrongdoing but has agreed to the $5.5 million USD civil penalty.

In other Crypto news, Binance invests $500 million in Elon Musk’s Twitter takeover.

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