Nvidia raises $10-300 million from Ethereum mining
- Posted on May 29, 2022
The tech company raised $100 million to $300 million from ethereum miners in Q4 due to GPU shortage
Nvidia Corporation
An estimated $100 million to $300 million of its fourth-quarter revenue came from ethereum miners Ethereum
Colette Kress, the company’s chief financial officer, said Wednesday, CoinDesk reported Wednesday.
What happened: According to the information shared, the company said it could not “accurately track or quantify” the end use of its graphics processing units (GPUs), but said the data represented a “relatively small portion” of its latest quarterly earnings.
The Santa Clara, California-based U.S. company said in its earnings report that its fourth-quarter revenue surged 61% year over year to $5 billion, beating estimates of $4.82 billion.
Nvidia CEO Jason Huang called the strong demand for the company’s GPUs “incredible.”
Fourth-quarter video game revenue was $2.5 billion, up 67% year over year.
Why it matters: The multinational company dedicated to the technology sector is also planning to launch a dedicated cryptocurrency mining processor next month to meet the needs of these digital asset miners.
The company expects the new mining chip to generate about $50 million in revenue in the first quarter, according to CoinDesk, and said it will quantify the resulting revenue in all future quarterly reports.
Nvidia is trying to block cryptocurrency mining through drivers using its RTX 3060 GPU, which will be released on Thursday, making it 50% less efficient at mining ETH.
As reported by The Verge, the small amount of GPU revenue received from cryptocurrency miners suggests that no miners are playing a significant role in the current GPU shortage.
Nvidia forecast sales of $5.3 billion in the first quarter of 2022 and said the GPU supply crisis will continue into the next quarter.
Industry Competitor Advanced Micro Devices, Inc.
, reported fourth-quarter revenue of $3.24 billion, up 53% year over year.
Price Action: Nokia shares fell 2.23% to $567 in after-hours trading on Wednesday, after closing up 2.52% at $579.96. ETH was trading up 0.47% at $1,622.39 at the last check.
The tech company raised $100 million to $300 million from ethereum miners in Q4 due to GPU shortage