Nvidia has concealed a serious fact when selling graphics cards. He will be fined 5.5 million for the “cryptography” of 2017

Nvidia, the largest graphics card maker, will have to pay a $ 5.5 million fine as a result of the concealment that cryptocurrency miners have been one of its largest customers for gaming graphics cards in the past. The portal informs about it PC Gamer.

The company was fined by the US Securities and Exchange Commission (SEC), which claims that Nvidia did not properly report the risk of growing demand for cryptocurrencies during 2017, which ultimately affected the gaming industry and the global rise in graphics card prices.

Nvidia could have avoided this fine by properly disclosing all the information in its Q-10 form, in which the company is required to state all risk factors for doing business.

The SEC refers in its documents mainly to the fiscal year 2018, which is not surprising, as cryptocurrencies at the turn of 2017 and 2018 experienced a huge boom for the first time around the world and the demand from miners was enormous at that time.

In an effort to make the most of the huge interest in cryptocurrencies of the period, Nvidia decided to increase the production of graphics cards, which, however, did not later prove to be a happy strategic decision.

After the severe fall of cryptocurrencies in 2018, the company admitted excess card stocks in the coming year, and Nvidia’s shares fell sharply from $ 70 to $ 32 per share, which, of course, angered investors.

However, the company learned its lesson, and by the end of 2021, its stock was $ 329 per share. Paradoxically, another huge boom cryptome boom helped, when several of them, including bitcoin, reached their peaks in the same year.

Well-educated, Nvidia even launched special cryptomen cards on the market due to the increased interest of miners in graphics cards, and in 2021 the company earned an incredible $ 26.91 billion. With such revenues of $ 5.5 million, Nvidia will certainly not make a heavy head.