The products Nvidia was focused mainly on gamers, but the hype around the cryptocurrency has done its job, and the company shifted to the miners, due to what she could earn good money.
But Nvidia has become the latest victim of the bearish trend on the stock market — the decline in the price of bitcoin and other cryptocurrencies has badly affected the income. Demand for a specific video card fell, in connection with which the company has announced the release of the game. “I guess we have passed the peak. We are not going to develop the mining hardware. Our profit from sales of video cards fell to $18 million, and we don’t expect her to ever grow up. The future of Nvidia is clearly not associated with cryptocurrencies,” — commented the head of the financial Department of the company Splits the Cres. Executive Director of Nvidia, Jensen Huang added: “In the beginning of the year we thought that the production of equipment for mining will be an integral part of our business, but in the second half of the year, its sale does not bring us a profit, but rather becomes unprofitable”.
In recent years, many pools, cloud mining has been forced to cut their customer base, or even close, because of falling profits. But the difference between pools and Nvidia that will be able to re-expand its customer base, and for Nvidia the resumption of production will cost enormously expensive. Perhaps the company will regret this in the near future if the price of bitcoin will rise again, and mining will again become very profitable.