NVIDIA Corporation (NASDAQ:NVDA) recorded a 77% decline in revenue from its line of cryptocurrency mining processors (CMP) over the last quarter.
What Happened: The company reported $24 million in revenue from CMP line for the quarter ending Jan 30, according to SEC filings published Feb. 16.
CMP revenue was down considerably from the $105 million reported in the third quarter. Overall, the company reported $550 million in revenue from its crypto mining chips for the fiscal year.
Why It Matters: Last year, Nvidia introduced an exclusive line of crypto mining microchips in an attempt to dissuade miners from excessively hoarding computer graphics chips like the GeForce RTX 3080 Ti and protect the interests of its customer base of gamers.
To further aid these efforts, the company also rolled out a hashrate limiter on its GeForce GPUs, making them undesirable to cryptocurrency miners.
The declining sales in Nvidia's crypto-focused line of microchips could be a point of concern for the company as more entrants move toward the space.
Nvidia’s competitors have started developing their own versions of cryptocurrency mining chips to cater to the growing market of crypto miners. Earlier this week, Benzinga reported that Intel Corporation (NYSE:INTC) revealed the first customers for its upcoming “energy-efficient” Bitcoin (CRYPTO: BTC) mining microchip.
Raja M. Koduri, Intel’s general manager of accelerated computing systems and graphics group said Block Inc (NYSE:SQ), Argo Blockchain ADR (NASDAQ:ARBK) and Griid Infrastructure (NYSE:GRDI) committed to buying the product.
NVDA Price Action: NVDA was trading 4.88% lower at $252.16 Thursday morning.
Photo by Christian Wiediger on Unsplash.
