The chipmaker NVIDIA is content with 5.5 million dollars (converted into 5.2 million euros) with the American watchdog SEC. The regulator says NVIDIA failed to properly inform its shareholders about the effect of cryptocurrency mining on sales of its gaming processors.
The SEC writes that NVIDIA should have told its shareholders that sales of its graphics processors were being impacted by the growing cryptocurrency mining market. When mining crypto, computer systems solve mathematical formulas to verify, for example, bitcoin transactions. Solving these puzzles requires a lot of computing power, which uses powerful processors. This process earns bitcoins to the owner.
In 2018, according to the SEC, NVIDIA did not do enough to inform shareholders that sales of its gaming processors increased because they were widely used by crypto miners. NVIDIA would have known. Due to the popularity of crytomines, it didn’t give shareholders a good idea of processor sales, according to the SEC.
The chipmaker has settled with the regulator and is paying $5.5 million. The company does this without acknowledging or denying its guilt. NVIDIA hasn’t said anything about it through spokespersons either.