The U.S. Securities and Exchange Commission (SEC) announced yesterday (6) the settlement of charges against the technology company NVIDIA. NVIDIA must pay 550 yuan for not fully informing investors in its 2018 financial report that crypto mining has an impact on its company’s business. million dollars fine.
NVIDIA’s 2018 financial report revealed falsehood
According to the SEC’s press release, NVIDIA was fined by the SEC for failing to properly disclose the impact of the crypto mining industry on its company’s gaming business in its 2018 financial reports for several consecutive quarters.
Ethereum mining revenue rose sharply in 2017, resulting in a large demand for GPUs. Although NVIDIA opened a new Crypto Mining Processor (CMP) production line, many GPUs for games still flowed into the hands of miners, and NVIDIA Bring in amazing income.
Although NVIDIA stated in its financial report that a large part of the increase in sales came from mining demand, the SEC said that NVIDIA did not clarify the relationship between such a highly volatile business and its earnings and cash flow fluctuations, making investors unable to determine the past Whether or not performance will equate to the likelihood of future performance.
That said, given the bull-and-bear nature of cryptocurrencies, NVIDIA’s sales amounts are not necessarily indicative of continued future growth, making investing in it even more risky. That’s why it’s so important to understand the extent to which NVIDIA’s gaming revenue is affected by crypto mining.
“NVIDIA’s misrepresentation of disclosures deprives investors of critical information to assess the performance of the company’s business in key markets. All issuers, including those seeking emerging technology opportunities, must ensure that their disclosures are timely, complete and accurate.” SEC said.
NVIDIA has not further admitted or denied the SEC’s claims, though it has agreed to pay a $5.5 million fine.
Post time: May-21-2022