Although digital currencies have soared in popularity and value throughout the year, Nvidia has not made significant gains from its cryptocurrency mining processor (CMP) series.
60% drop in CMP line
CMP sales declined from $266 (€234.4) million in the second quarter to $105 (€92.6) million in the third quarter, which ended in October. Nvidia, for example, reported in its quarterly financial statement.
Nvidia claims to have earned $526 (€463.5) million in revenue during the sale of the product. This is approximately 3% of total revenue of $19.27 (€16.98) billion over the same period. The company’s total income is almost entirely driven by the sale of gaming, data centers and professional visualization equipment.
The past quarter was no different in terms of CMP sales revenue. Nvidia surpassed Wall Street expectations by generating more than $6.5 billion in profit. Still, it failed to meet its profitability target for crypto-mining GPU lines for the second quarter of 2021.
During the earnings call for the first quarter predicted Nvidia CFO Colette Kress reported revenue of $400 million for the company’s cryptocurrency mining processor line in the second quarter. In the second quarter, Nvidia sold CMPs worth $266 (€234.4) million, a margin of one-third short of target.
“Our GPUs can also mine crypto”
While CMP has yet to gain significant traction, Nvidia’s profits have not been hurt. The value has increased by almost 123% this year. Total sales increased by 50% year over year. In one quarter, $3.2 (€2.8) billion was generated by selling graphics cards to gamers and PC builders, according to the company’s results on Wednesday.
Still, the company claims it can’t be sure that growing graphics card sales aren’t tied to the cryptocurrency market. Speaking to analysts on Wednesday, Kress said:
“Our GPUs are capable of crypto mining, but we have no insight into how much this will affect our overall GPU demand.”