CryptocurrencyCryptocurrency Mining Chip Producer Nvidia Reports Significant Profits After...

Cryptocurrency Mining Chip Producer Nvidia Reports Significant Profits After Decline


The American Chip developing company Nvidia attests to its dip in shares due to the CMP (Cryptocurrency Mining Process) sales decline. The company stated that its 52% decrease for its Q1 of “OAM and other” investments was because of the decrease in CMP sales. Nvidia stated this, as explained in a filing on Wednesday.

In 2021, Nvidia recorded $24 million in returns from its CMP sources; this also recorded a discouraging decrease of 77% year-over-year.

Last year January, the corporation introduced the CMP product to discourage cryptocurrency miners from storing up existing mining devices like Ethereum’s famous GeForce RTX 3080 Ti.

Related Reading | Perp Traders Remain Quiet As Bitcoin Struggles To Hold $30,000

While the chipmaker didn’t explain the exact sales amount its CMP sales provided, it did tag the value “nominal” and over $155 million in loss from the previous year.

Nvidia Shares Tumble At The End Of Q1

The company experienced strong quarterly growth from 2021 last quarter to 2022 first quarter, increasing by 8% in returns. Thus, making up to $8.98 billion. Its shares also increased by 3% to $1.36 a share. In addition, the chipmaker stated that it’d continue its buyback program reaching 2023 end, and it is worth $15 billion.

Nvidia And The Q2

Nvidia has now been experiencing a steady decrease in interest in the CMP mining chips during this Q2. The reasons why this is so might probably be because of Ethereum’s porting to the Proof-of-staking mechanism. The current bear market, or the recently deployed products from the industry leader—Intel Corporation. We don’t know, but we do know that the tech giant isn’t experiencing a good time at its current turnover.

Q2 isn’t starting as interesting as Q1, and pundits project a 4% loss to $8 billion in turnover. During Thursday after-hours trading, Nvidia (NVDA) shares decreased by 7% to $157.8. Also, the NVDA stocks have experienced an almost 50% decrease in the year-over-year report, reflecting a poor outlook for tech stocks.

Related Reading | Bitcoin Bearish Signal: Whale Ratio Continues To Stay At High Value

During last year’s Q2, Nvidia encountered a 33% dip from expected returns, reaching $266 million, then $106 million in Q3, and $24 million in Q4. That value has still fallen. The chipmaker revised its expectations for the second quarter (Q2), summing it up to $8.1 billion because of the Russia-Ukraine war, and Lockdown in China.

Nvidia CMP And Cryptocurrency Mining

Nvidia’s Santa Clara-situated CMPs can be effective for mining Bitcoin, Ether, and other digital assets that use the Proof of Work consensus mechanism. In addition, the token’s graphics card, built for gaming, can be effective for mining cryptocurrency except restricted.

Cryptocurrency
Cryptocurrency market falls by 1.20% | Source: Crypto Total Market Cap on TradingView.com

One notable fact is that CMPs are very scarce in supply. Even on secondary markets, it’s rare to find them. Therefore making the chances of sales slimmer and smaller.

Featured image from Pixabay, chart from TradingView.com



Original Source Link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Massive Protest Rocks The Supreme Court For Second Day After Roe Is Overturned

The protesters aren’t going away, and their numbers seem to be growing on the second day after the...

What is non-exercise activity thermogenesis (NEAT)?

It can be a secret weapon for those with weight loss goals, but for many people the answer...

'I decided to build my own camp': 14,000-SF Poconos home with indoor Olympic-length pool lists for $3.5M

Located on 73 acres, the estate also includes a home theater, outdoor kitchen and a sprawling gym. ...

Deadly Earthquake Devastates Afghans Already Reeling From Poverty

GAYAN, Afghanistan (AP) — Afghanistan’s deadly earthquake this week struck one of the poorest corners of a country...

The Umbrella Academy Season 3 Ending Explained: A Kugel-What-Now?

Basically, yes ... we think. The Hotel, it turns out, is protected by an otherworldly defender: a samurai...

World Health Organization says monkeypox is not a global health emergency right now

The World Health Organization on Saturday said the rapid spread of monkeypox across dozens of nations does not...

Must Read

Protesting Tips: What to Bring, How to Act, How to Stay Safe

Reproductive rights in America have drastically changed. The...

Tips For Building A Business On Bitcoin

Bitcoin is the flagship cryptocurrency. It provides simple...
- Advertisement -

You might also likeRELATED
Recommended to you