SEC fines NVIDIA for 'not informing properly' investors about mining

Mining sector skewed the statistics and it wasn't properly addressed by the reports 09.May.22 9:18 AM By Shawn Highstraw Photo Pinterest    459

NVIDIA settles a dispute with the US stock market watchdog SEC for 5.5 million dollars. The regulator says NVIDIA did not properly inform its shareholders about the effect of mining cryptocurrencies on the sales figures of its video processors. The SEC reports that NVIDIA should have told shareholders that sales of its graphics processors were affected by the growing crypto mining market. When mining crypto coins, computer systems solve mathematical formulas to verify bitcoin transactions, for example. Solving those puzzles requires a lot of computing power, which uses powerful processors. This process provides the owner with bitcoins. In 2018, according to the SEC, NVIDIA did too little to inform shareholders that the sales figures of the gaming processors increased, due to the fact that they were widely used by crypto miners. NVIDIA would have known that. Due to the popularity of mining, shareholders were not given a good view of the sale of the processors, the SEC says. The chip manufacturer reached a settlement with the regulator and is going to pay 5.5 million dollars. The company does so without pleading guilty or refuting the accusation. NVIDIA has also said nothing about it through spokespersons.

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