Nvidia FINED for hiding Crypto earnings!
Nice uh. The original source here is uh sec.gov thats, a nice source, the sec charges nvidia corporation with inadequate disclosures about the impact of crypto mining, see thats the thing when youre a public company is, you actually do need to say what your revenues are and where they come From you do need to provide accurate information about the trajectory that your business is on, and i can see from a pr standpoint why it might not be in nvidias interest to disclose just how many of their gpus are being sold to crypto miners. Even though we all have twitter okay, we all know how to go to videocards.com and see that nvidia is selling a lot of gpus to crypto miners, whatever they might say about. Well, we created cmp so that g force cards wont go to two miners. Well, the securities and exchange commission announced settled charges against nvidia for inadequate disclosures during consecutive quarters in the 2018 fiscal year, nvidia im just going to say allegedly just it doesnt seem to be allegedly because this is settled so im. Just i just dont. I just dont want to get on throw her out there yeah, throwing them out there, throwing it out. There anyway failed to disclose that mining was a significant element of its material revenue, growth from the sale of its graphics, processing units designed and marketed for gaming. Nvidia misled investors by reporting a huge boost in revenue related to gaming, despite most of those cards going straight into the hands of miners.
So if you were wondering if what you suspected all along was true and like everyone told you was true and like what everybody knew that nvidia never gave two flights about gamers um, then you and their investors are in the same boat yeah. I dont know the reason that this is an issue is because the boom and bust nature of crypto mining means that these sales numbers dont indicate any kind of reliable future growth and analysts and investors routinely asked senior management about the extent to which increases in gaming Revenues are this during this time were driven by crypto mining like they did mention crypto mining as an important factor in other markets. So they know that profits from sales for cryptocurrency mining is a thing um, which would seem to suggest that um, at least in the secs eyes that nvidia was being deliberately deceptive. I mean i personally cant, imagine nvidia being deliberately disruptive theyve, never done that or manipulating the flow of information nope not at all. No, no, i dont think nvidia has ever done that, so we should probably no luke no ive personally been involved. You get nvidias name out of your mouth. Did you okay? This is, i dont want to get into it, but there was a tackle thing. Did you hear about that? Oh no! What tackle thing? Okay, yeah youre gon na want to look that up after the show, but um its its its pretty epic but yeah.
This is brutal um if you were really hoping like hey this. Is this annoys me for whatever reason im hoping they brought the hammer down? Uh not so much uh. If you know how much like you know, revenue nvidia deals in 5.5 million usd is not really that big of a deal um, i mean it sucks for nvidia yeah, i mean a little. I dont think it would majorly change any strategies. Moving forward, probably not um, also nvidia, is not admitting to any wrongdoing as part of the settlement nice, but agrees to stop any unlawful failures to disclose information.