Investors sue NVIDIA for understating crypto revenue

Posted on Monday, May 18 2020 @ 9:53 CEST by Thomas De Maesschalck

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.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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