The US Securities and Exchange Commission has fined Nvidia $5.5m USD for failing to properly disclose the impact of cryptomining on revenue the company earned from the sale of its gaming GPUs – a failure the SEC says “deprived investors of critical information [needed] to evaluate the company’s business in a key market”.
Announcing the results of its investigation, which specifically relates to Nvidia’s actions during its fiscal year 2018, the SEC claimed that while the tech company had reported material growth in revenue within its gaming business at the time, it had failed to reveal to investors that – based on its own information – its gaming sales were driven in significant part by cryptomining.
Why’s that important? As the SEC puts it, “These significant earnings and cash flow fluctuations related to a volatile business for investors to ascertain the likelihood that past performance was indicative of future performance.”
