Nvidia Quits Crypto Related Business
Graphics card maker Nvidia has announced that it will no longer take part in any business involving cryptocurrencies. In a press release, CFO Colette Kress noted that they had attained an optimal level in the business. She noted that revenue targets set earlier were not met.
The firm saw revenue drop to about $100 million with crypto targets declining to hit $18 million. The firm will seize crypto related business immediately.
Jensen Huang, another senior official had similar views as Kress. He noted that early this year, they projected that cryptocurrencies will play a bigger role in the firm’s overall revenue. He said continuing with the projects will be immaterial.
In 2017, Nvidia faced a huge demand for GPU cards. They later instituted a number of measures to tackle the demand. Retailers were urged were to withhold graphic cards on their PCs. During the period, graphics cards dubbed premium was developed with many users trying to conduct mining in their homes.
Generally, mining is a lucrative venture. Giant firms like Samsung have plans to produce ASIC mining rigs. Nvidia’s flop in the business is due to GPU mining drop. In 2018, firms like Hashflare have greatly contributed to Nvidia woes.
Other firms like Bitmain have recorded $1.1 billion in profits in the first quarter of 2018. Elsewhere Nvidia has stabilized on the stock market.