CCBeast Special

Nvidia exits the Cryptocurrency Mining Manufacturing Industry Defeated
Editorial Team

Nvidia is one of the largest producers of graphics card and computer chip software worldwide. The company was initially established to create products for gaming and video, but soon it found a demand for its products within the cryptocurrency mining community on a personal and an industrial scale.

Now however, it seems that the fall in the Bitcoin price is being followed by a general commercial downturn. Because Bitcoin is down, while the mining cost is up, the profits are low. In fact, Nvidia is not making any money off its products, since mining is essentially becoming obsolete.

As resumed, Chief Financial Officer at Nvidia, Colette Kress has said:

“We believe we’ve reached a normal period as we’re looking forward to essentially no cryptocurrency as we move forward. 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.”

Furthermore, the CEO of Nvidia Jensen Huang has added:

“In the beginning of the year, we thought and we projected that crypto would be a larger contribution through the rest of year… But, at this time, we consider it to be immaterial for the second half.”

According to publication, this is not the only case of a closure of a mining company during the recent months. Indeed, we have witnessed a large amount of cloud-mining operations close or reduce their customer base as a result of the falling profits… However, when the profitability shoots backs up again, these cloud-mining firms would be able to boost their customer base once again. Nevertheless, in the case of Nvidia, they may have fallen behind on the technology over time and could have been at risk of losing out, if and when cryptocurrency mining becomes more profitable again.