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Nvidia (NVDA) failed to disclose that cryptomining was a significant source to its 2018 revenue, according to the US Securities and Exchange Commission (SEC).
- According to the SEC, Nvidia declared meaningful growth in sales within its gaming sector in two of its Form 10-Qs for fiscal 2018. However, according to the agency, Nvidia was aware – but failed to disclose to investors – that cryptomining was driving a significant portion of the increase in sales.
- "NVIDIA's omissions of material information about the growth of its gaming business were misleading," the SEC said, "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 cryptomining."
- To satisfy the SEC's charges, Nvidia consented to a cease-and-desist order as well as a $5.5 million fine.
- According to Nvidia's disclosures, revenue for its Cryptocurrency Mining Processors (CMP) decreased to $24 million in its fiscal fourth quarter ending Jan. 30, down 77 percent from $105 million in the previous quarter.
- On Friday morning, Nvidia shares are down slightly, while the Nasdaq is down 1.15 percent.
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