Nvidia pays $5.5M fine to settle SEC charges over impact of crypto mining
Nvidia (NASDAQ:NVDA) has agreed to pay a $5.5 million fine to settle charges the Securities and Exchange Commission levied against the company for what it deemed as "inadequate disclosures" over the effects crypto mining has had on the company's gaming business.
The SEC alleged that in consecutive quarters during Nvidia's (NVDA) fiscal 2018 year, the company did not disclose that crypto mining was a "significant element" of revenue relating to sales of its GPUs that were designed and marketed for gaming.
The company was required to disclose in its 10-Q forms that the increase in gaming sales was driven significantly by crypto mining, but failed to do so.
âNVIDIAâs disclosure failures deprived investors of critical information to evaluate the companyâs business in a key market,â said Kristina Littman, Chief of the SEC Enforcement Divisionâs Crypto Assets and Cyber Unit, in a statement.
In paying the fine, Nvidia (NVDA) did not admit to any wrongdoing but did also not deny the SEC's findings.
Nvidia (NVDA) shares fell more than 3.5% to $181.81 in early trading on Friday, amid a wider market sell-off.
Earlier this week, investment firm Morgan Stanley restarted coverage on Nvidia (NVDA), calling the semiconductor giant "one of the best growth names" in the space.