Decrypt reports a group of investors are going after NVIDIA over issues with the firm's cryptocurrency mining business revenue reporting. The investors allege that during the cryptocurrency bubble of 2017-2018, NVIDIA significantly understated its GPU sales to cryptocurrency miners.
The investors claim that quarter after quarter, NVIDIA falsely attributed much of these sales to the Gaming segment:
According to the disgruntled investors, NVIDIA “falsely claimed, quarter after quarter, that the gaming segment's sales growth resulted from strong organic demand from gamers while misleading the market into believing that NVIDIA's dependence on cryptocurrency-related revenues was 'small.’”
The lawsuit alleges that NVIDIA understated its crypto-related sales by almost $1.13 billion and that this resulted in a big stock price hit when the crypto bubble popped. The disgruntled investors believe NVIDIA hid the true source of some of its growth and understated its reliance on sales to crypto miners.
NVIDIA shares are currently trading for $339.63, which is an all-time high.