Cryptocurrency, News

Nvidia’s Crypto Mining Chip Sales Dropped by 60% in Q3

Nvidia, the GPU manufacturing giant, has released its Q3 report a few days back. This report issues an exclusive insight into the quarterly earnings of Nvidia, how much revenue is coming in, and what are some of the sectors of the company need paramount attention from the managerial staff.

Nvidia’s Q3 Report

According to the report, every aspect of the industry is going great except for the sale of crypto mining chips. Despite the ever-increasing demand for these crypto-based graphics cards and the adoption of more cryptocurrencies into both the institutional and retail sectors of the market, there exists a huge decline in sales for these chips, as reported by Nvidia.

There can be many reasons for this particular outcome, the most apparent one being China closing its doors on crypto mining altogether. The country announced a severe crackdown against crypto mining of all kinds, especially Bitcoin mining, and miners were forced to close up their operation and leave Chinese territory to look for other friendly frontiers.

Another reason could be the off listing of many GPU-oriented products and mining equipment from wholesale and retail E-commerce sites in China. It is as if China is closing down each and every market segment for the possibility of the locals getting their hands-on mining equipment. This report by Nvidia also presents the possibility that maybe in the fourth quarter the sales would be next to negligible. Nvidia has yet to make a prominent profit on its cryptocurrency mining processor; according to the latest report, these sales dropped by a factor of 60%, which is subsequently a higher percentage as compared to the sales of normal graphics cards that has seen a massive boost.

Nvidia developed the CMP line on a hunch that people would prefer their chips over standard graphics cards, which they can find cheap on the retail market, but this hunch has not paid off yet. Part of the problem is the graphics card resellers and those people who prefer buying a used GPU just to save some extra bucks rather than going off to buy a specific GPU chip that is manufactured for crypto mining and for that reason is extremely costly.

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