Nvidia, world’s largest graphics card manufacturer, announced they made a profit from cryptocurrency businesses. The company had $289 million revenue from cryptocurrency based sales, increasing last year’s revenues by 10%. However, they stated that they expect a decrease in the cryptocurrency sales in the following quarter.
On Thursday, Nvidia released its public financial reports. In the reports, the company has given information about their financial performance in the first quarter. The company increased its overall profits and sales when compared to last year’s data. When we look at the cryptocurrency stats, we see that Nvidia made a profit from cryptocurrency-related sales. The sales for cryptocurrency equipment is around $289 million. This is equivalent to 9% of all revenues of the company. Although the finances look good in the first quarter, Nvidia expects a decrease about 60% in cryptocurrency-related sales. This expectation stems from Bitmain rivalry and the fact that crypto miners are digressing to Bitmain’s cryptocurrency-focused hardware.
What is the reason?
At the end of 2017, the graphics card shortages was a big problem for the cryptocurrency community. Since there were not enough graphics cards, the prices went up dramatically. That boom in the sales of cards seems to have affected the finances of companies in a positive way. Although Nvidia made more profit in cryptocurrency related hardware than AMD, the company was surpassed by Bitmain. And, this competition is the primary reason why Nvidia expects a decline in sales.
Also, there are some controversial issues about whether a consumer uses the graphics card for gaming only or mining. The companies have tried to implement ways to detect the differences. However, the users who use the cards for both purposes made things complicated. That is another reason why Nvidia and AMD are reporting low amounts of cryptocurrency related sales compared to Bitmain. Nonetheless, the reality could be different than expectations. In Q1, Nvidia expected a $200 million sale on cryptocurrency business, however, they surpassed this target. The company hopes to surpass the expectations in the second quarter as well.
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