The U.S. Securities and Exchange Commission (SEC) said that chip giant Nvidia (NVDA) failed to disclose that crypto mining was a significant contributor to its 2018 revenue.
- In two of Nvidia’s Form 10-Qs for fiscal 2018, Nvidia reported material growth in revenue within its gaming business, said the SEC in a press release. However, continued the agency, Nvidia was aware – but failed to disclose to investors – that the boost in sales was, in significant part, driven by crypto mining.
- “NVIDIA’s omissions of material information about the growth of its gaming business were misleading given that NVIDIA did make statements about how other parts of the company’s business were driven by demand for crypto, creating the impression that the company’s gaming business was not significantly affected by crypto mining,” said the SEC.
- Nvidia has agreed to a cease-and-desist order and the payment of a $5.5 million fine to settle the SEC’s allegations.
- Nvidia shares are down modestly on Friday morning alongside a 1.15% decline for the Nasdaq.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.