The NVIDIA technology company seems to be in trouble with the Securities and Exchange Commission or SEC.
The result is that NVIDIA is currently being fined $5.5M, which NVIDIA immediately approved without any debate with the SEC.
NVIDIA Considered Not Transparent
According to a publication by the SEC, this technology device manufacturer does not fully report the magnitude of the impact of crypto mining activities on the company’s revenue.
The mining activity in question is in the realm of the game sector or the game in its business which involves mining or crypto mining.
Since crypto’s popularity has been steadily increasing since 2017, NVIDIA has become the largest manufacturer selling GPUs for mining crypto.
According to the SEC, NVIDIA reported selling GPUs to crypto miners as part of its gaming business revenue.
What’s lacking is that NVIDIA doesn’t report that the increase in revenue from the gaming business results from crypto mining. This statement is an obligation that must be submitted under document 10-Q by the SEC.
In addition, NVIDIA did not state how the increase in GPU sales affected other sectors of its business.
This lack of reporting made the SEC assume that NVIDIA’s gaming sector operations are not tightly tied to crypto mining-related businesses.
The SEC considers that the lack of reporting makes the company lack transparency to investors as a public company. This lack of reports has an impact on increasing investors’ difficulty in evaluating the company’s current and future conditions.
Kristina Littman, Head of the Oversight Division of the SEC’s Crypto and Digital unit, stated that,
“All issuers, including companies engaged in innovative technology, must provide high transparency that is precise, complete, and accurate.” This statement is addressed not only to NVIDIA but to all technology companies engaged in innovative fields and operating as public companies with shares open for trading on the American stock exchange.
NVIDIA’s response
After finding this news, what is surprising is that NVIDIA has not disputed the SEC’s statement at all.
It is rumored that NVIDIA is not trying to fight, dispute, or even clarify.
NVIDIA only responded by paying a fine given by the SEC to him of $5.5 million.
NVIDIA also did not make any statements via its social media. Many investors assumed this was the SEC’s rebuking other companies for indirect “earnings smuggling.”
However, after this case, NVIDIA seems to continue to innovate, one of which is leading to the metaverse world.
In early 2022, the company announced the launch of a related program to support individuals interested in creating products in the metaverse.
One of the products being developed by NVIDIA is Omniverse, which is software for creating items that are ready to be published in the virtual world or metaverse.
Regarding the case with SEC, everything seems to be over, and NVIDIA is continuing with the company as usual.
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