Nvidia Accused of Concealing Cryptocurrency Mining-Related GPU Sales, Class Action Lawsuit Moves Forward

BlockBeats News, March 26 — According to Decrypt, a U.S. federal judge has approved class-action lawsuits against a group of investors, accusing American tech giant NVIDIA and its CEO Jensen Huang of concealing the extent to which their gaming GPU revenue depended on crypto mining-related sales between 2017 and 2018.

According to a ruling filed Wednesday by U.S. District Court Judge Haywood S. Gilliam Jr., NVIDIA failed to prove that its statements regarding crypto mining revenue had no impact on its stock price. Investors first filed suit against NVIDIA in 2018, alleging the company concealed over $1 billion in GPU sales related to crypto mining and claimed Huang downplayed the scale of this demand. In 2022, the U.S. Securities and Exchange Commission fined NVIDIA $5.5 million for not disclosing the impact of crypto mining on its business.

NVIDIA has previously stated that crypto mining accounts for only a small part of its business, and most sales related to mining are separately accounted for from its core gaming business. The company also claimed its supply chain is under control and capable of absorbing excess GPU inventory. However, the plaintiffs argue that a significant portion of revenue driven by the crypto market is generated through NVIDIA’s GeForce gaming graphics cards, and that most of this revenue is categorized under its gaming segment, exposing the company to volatility risks associated with the crypto market cycle.