Nvidia Crypto Mining Processor Revenue Slumps 77% to $24M in Q4 2021

Computer chip producer Nvidia has seen income from its devoted crypto mining {hardware} stoop from $105 million in Q3 2021 to simply $24 million in Q4, a drop of 77%.

According to Nvidia’s filing, income from its Crypto Mining Processor (CMP) for 2021 totaled $550 million—simply 0.2% of its whole revenues of $26.91 billion for the interval.

That’s in line with Nvidia CFO Colette Kress’ earlier prediction that income from the CMP would “decline quarter-on-quarter to very negligible ranges in Q4.”

CMP gross sales carried out beneath expectations all year long; regardless of a powerful begin to the yr, with Nvidia elevating its Q1 income estimate to $150 million, Q2 gross sales revenues fell wanting its preliminary estimate of $400 million, with the corporate taking in simply $266 million in the second quarter. In Q3, they slipped additional, to $105 million.

That’s unlikely to hassle Nvidia an excessive amount of, nonetheless; its whole fiscal yr 2021 revenues had been up 61%.

Nvidia and crypto

Nvidia developed the CMP to scale back demand from crypto miners for its Graphics Processing Units (GPUs). Although Bitcoin miners have moved on from GPUs to devoted ASIC miners, it stays cost-effective to mine different cryptocurrencies equivalent to Ethereum utilizing GPUs.

Facing a backlash from its core client base of PC players, Nvidia first tried to restrict its GPUs to make them “much less fascinating” to miners, earlier than launching the CMP in 2021.

In its submitting, Nvidia said that whereas its GPUs are able to cryptocurrency mining, it has “restricted visibility into how a lot this impacts our total GPU demand,” citing volatility in the cryptocurrency market and adjustments in the tactic of verifying transactions, equivalent to Ethereum’s impending shift from proof-of-work to proof-of-stake.

The chip producer doubled down on its dedication to limiting crypto mining on its GPUs, including that, “Nearly all desktop NVIDIA Ampere structure GeForce GPU shipments are Lite Hash Rate to assist direct GeForce GPUs to players.”

Other GPU producers equivalent to AMD and Intel have introduced that they will not observe swimsuit.

And Nvidia’s CMP income woes do not seem to have dissuaded different chipmakers from venturing into mining {hardware}; final month, Intel introduced that it was creating a brand new “energy-efficient” Bitcoin mining chip.


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About the Author: Daniel