Nvidia has yet to make a profit from its cryptocurrency mining processor (CMP) line, despite the rise in digital currency values this year.
Following Nvidia’s third quarter results announcement, the company’s CMP sales plunged 60% sequentially, and the product line’s sales are expected to decline further in the fourth quarter.
According to Nvidia’s October quarterly report, CMP sales fell from $266 million to $105 million in the third quarter of 2010.
Nvidia’s total revenue of $19.27 billion, this product brought about $526 million. Gaming, data centre, and professional visualisation equipment are the company’s primary sources of revenue.
In terms of CMP sales revenue, the previous quarter remained the same. In excess of Wall Street’s expectations, Nvidia produced over $6.5 billion in revenue, according to Cointelegraph.
Despite the fact that the firm missed its second-quarter 2021 profitability target for its GPU crypto-mining product line, this was still a positive sign for the company.
Nvidia’s chief financial officer, Colette Kress, anticipated that the company’s cryptocurrency mining processor line will generate $400 million in sales in the second quarter. In the second quarter, Nvidia sold CMPs for $266 million, which is less than a third of their target.
The failure of CMP to gain traction has not had any impact on Nvidia’s profits. A 123% increase in price in just one year. Gamers and PC builders bought $3.2 billion worth of graphics cards from the company in 2013, according to its financial report released on Wednesday.
As a result of this, the company asserts, it cannot be certain that the rise in sales of its graphics cards is linked to the cryptocurrency industry. On a conference call with investors on Wednesday, Kress said, “Our GPUs are capable of crypto mining, though we do not have visibility into the impact on our overall GPU demand.”
Cryptocurrency miners are reportedly straining Kazakhstan’s power supply.
Since Kazakhstan is currently the second-largest contributor to Bitcoin’s hash rate, its energy grid may not be prepared to handle the migration of many cryptocurrency miners from China and other countries that want to take advantage of low-cost electricity.
Miners in Kazakhstan who aren’t registered may be using twice as much electricity to avoid paying taxes and other costs, according to a report from Reuters. Crypto miners in Kazakhstan may be consuming as much as 1.2 gigawatts of electricity at any given time.
Concerning the strain on Kazakhstan’s electricity infrastructure, vice minister of energy Murat Zhurebekov believes it “cannot be delayed any longer. Although the government has ordered that unregistered miner’s electricity use be reduced, officials have not indicated how they will discover them.