Why chip manufacturing giant Nvidia is pulling out from cryptocurrency mining
Nvidia, the world’s biggest chip manufacturing company, is backing out from crypto-related products, the company said in a press release. The firm’s chief financial officer Colette Kress, in a statement, confirmed it. “We believe we’ve reached a normal period as we’re looking forward to essentially no cryptocurrency as we move forward,” she said.
“Our revenue outlook had anticipated cryptocurrency-specific products declining to approximately $100 million, while actual crypto-specific product revenue was $18 million, and we now expect a negligible contribution going forward,” she added.
Nvidia CEO Jensen Huang said, at the beginning of the year, crypto was thought to be a larger contribution through the rest of the year “but, at this time, we consider it to be immaterial for the second half.”
Kress further said, “Although crypto revenue may not be large, it still has a derivative impact on our stack in terms of what we are selling and to both replenish the overall channel and such. So, over the last several quarters, that we had stabilizing that overall channel, we did get the great effect of selling just about everything and our margins really been able to benefit from that.”
The California-based company took measures to meet the heavy demand for GPU cards for mining during 2017’s December rally, wrote Coin Insider. Nvidia had to request retailers to set aside some GPUs for gamers.
Scores of enthusiasts started mining cryptos at home in their personal computers. While crypto mining attracted many people to invest in high-end graphic cards, the story of their profits is not the same.
Crypto mining firms like Hashflare have also pulled down the shutters owing to the bearish market through 2018. However, Bitmain, the biggest ASIC manufacturer mad$e a profit of $1.1 billion in the first quarter of 2018.
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