May 10, 2022 · less than 3 min read
The chip producer wasn’t completely accurate when it said demand was spiking.
GPUs are the heart and soul of crypto mining. These powerful chips help miners get through the huge amount of processing power they need to keep the cryptocurrency production chain churning – excellent news for Nvidia.
Or maybe not. The company was quick to keep its investors in the loop about surging demand for its products, but it was a little less eager to keep them in the loop about exactly what was driving demand. In other words, it wasn’t that the company was selling its greatest ever products – it was just being driven by crypto miners.
A price to pay
That’s why the SEC has slapped the firm with a $5.5 million fine. Crypto is hardly known for being a slow market, so if you’re telling investors that the chips are up, it’s generally a good idea to tell them it’s because the business is being driven by a highly volatile crypto asset. Right?
According to the SEC, Nvidia wasn’t as forthcoming about crypto-side drivers of its growth as it should have been. By labeling some of its products as crypto-driven, but not marking the GPU cards as such, they led investors on a merry dance – but in doing so, have ended up falling flat on their backs.
Liked This Article?
Get Daily Trending Topics Directly To Your Inbox
Scoop is a free daily newsletter that has the wit, charm, and most importantly, the info you need to start your day