The United States Securities and Exchange Commission, or SEC, announced that it had settled charges against Nvidia for inadequate disclosures concerning the impact of crypto mining on the company’s gaming business.
On Friday, the SEC declared that Nvidia failed to disclose that mining cryptocurrencies were “a significant element of its material revenue growth” during the 2018 fiscal year, based on sales of graphic cards used by crypto miners. Nvidia agreed to pay a $5.5 million penalty.
According to the SEC, Nvidia misled investors by failing to disclose the demand for crypto mining.
“NVIDIA’s disclosure failures deprived investors of critical information to evaluate the company’s business in a key market,” said Kristina Littman, chief of the Crypto Assets and Cyber Unit of the SEC’s Enforcement Division. “All issuers, including those that pursue opportunities involving emerging technology, must ensure that their disclosures are timely, complete and accurate.”