Nvidia Pulls Out of the Cryptocurrency Mining Game

Nvidia, the leading graphic card and chip maker, has announced in a press release that it will no longer invest in cryptocurrency-related products.

The chipmaker’s CFO, Colette Kress, stated:
“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.”

Jensen Huang, Nvidia CEO, concurred Kress’ position, explaining:
“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.”

With the heavy demand for graphic processing units (GPUs) during the height of Bitcoin back in December 2017, Nvidia had to formulate a plan for GPU cards used for mining purposes and and even requested retailers to reserve stock for customers needing graphics cards to power games on their personal computers. The high demand for Nvidia’s GPUs at the time inflated the price as thousands of customers began mining cryptocurrencies at home.

Despite the bearish market for cryptocurrency, well established enterprises have been successful in the mining sector, as they continue to develop ASIC mining rigs. Bitmain the biggest ASIC manufacturer has reported a $1.1 billion USD profit in the Q1 of 2018 alone.
Along with Nvidia, other cryptocurrency mining projects such as Hashflare, have echoed the leading chip maker’s sentiment dissolving their operations throughout 2018’s bear market.
Nvidia’s announcement has finally settled its stock price at the current price of $253.32.