Reports indicate that the company which earlier hope to make an impact in the crypto space lost interest in cryptocurrency. It is still unknown whether it is; the crypto industry declining or Nvidia was outcompeted from the mining business.
Nvidia Leaves Cryptocurrency Mining
US semiconductor manufacturer NVidia had opted into cryptocurrency mining and ASIC making for cryptocurrency mining over a year ago. The company believed it could make an impact in the cryptocurrency industry using its available technologies. Surprisingly NVidia recently announced the closure of its cryptocurrency related ventures.
The Industry giant just unveiled its new Geforce RTXTM 2000 Series computer graphics card this week before announcing a retreat from crypto mining. With a new line of the industry-leading graphics card, Nvidia could be aiming at concentrating on what it does best. The company’s CEO Colette Kress commented on their focused exit from crypto saying,
“We believe we’ve reached a normal period as we’re looking forward to essentially no cryptocurrency as we move forward,” Colette Kress, Nvidia CFO confirmed. “Our revenue outlook had anticipated cryptocurrency-specific products declining to approximately $100 million, while actual crypto-specific product revenue was $18 million, and we now expect a negligible contribution going forward,” Ms. Kress detailed.
Nvidia stocks are traded on the NASDAQ Stock Exchange. The company has existed for about a quarter century now and remains top of its industry to date. Cryptocurrency industry experts anticipated NVidia would rise in the crypto industry as well when the company announced its first crypto activities. It is believed NVidia could have failed to reach its set milestone in the crypto business.
Is NVidia Leaving or Kicked Out?
Recent rumors have it that the company was lured into the mining business through the demand for its GPU cards. However, NVidia makes cards specified for gamers and not miners who require GPU cards with more capacity. Furthermore, the company joined the crypto bandwagon at the end of 2017 when prices were at its top; NVidia could have anticipated prices would stay that way.
“Although crypto revenue may not be large,” the Nvidia CFO stressed,”it still has a derivative impact on our stack in terms of what we are selling and to both replenish the overall channel and such. So, over the last several quarters, that we had stabilizing that overall channel, we did get the great effect of selling just about everything and our margins really been able to benefit from that.” In addition, it is a financial truism at this point: crypto can be brutal.
Expanding businesses are always a gamble, especially when done without a profound background. Obviously, NVidia desired to conquer more territories in the technology space only that it chooses crypto, a very fragile business.