Nvidia, the world’s biggest graphics card and chip maker, in a statement, announced that it had officially ended its quest for cryptocurrency investing. The company linked its abrupt decision to decline in demand on various cryptocurrency products over the past few months.
In the statement, Nvidia’s CFO Colette Kress said, “We believe we’ve reached a normal period as we’re looking forward to essentially no cryptocurrency as we move forward. Our revenue outlook had anticipated cryptocurrency-specific products declining to approximately $100 million, while actual crypto – specific product revenue was $18 million, and we now expect a negligible contribution going forward.”
Kress’s sentiments drew support from several Nvidia officials with Jensen Huang, the CEO adding that the organization’s cryptocurrecy-focused mining chips had declined substantially hence negatively impacting its revenue expectations as prices on cryptocurrencies maintained a downward trend.
Nvidia first came to the limelight in the crypto venture and its subsequent decision to abandon the concept after July’s Bitmain profit gains where the renowned bitcoin mining company amassed $1.1bn in profits during the first quarter of 2018, while Nvidia recorded $550 million from all its operations combined, about 50% less of Bitmain’s gains.
Although Nvidia draws most of its revenue from graphics card and chip manufacturing sales, its attempt to level with Bitmain in cryptocurrency and overall market returns were futile leading to its decision to put an end to the venture.
While analysts remained speculative unto Nvidia’s move, the company defended its measures saying that the downtrend in the crypto market was inaccurate, essentially due to Bitmain, whose revenue is collected from its primary operations, similar to those conducted by Nvidia’s cryptocurrency division, were higher after the first three months compared to Nvidia’s collective revenue drawn from all its divisions.
Leave A Comment