Despite the cryptocurrency rally over the course of the year, Nvidia did not make much profit from its cryptocurrency mining (CMP) line.
According to Nvidia’s third-quarter report, the manufacturer’s sales fell 60% sequentially in the fourth quarter, and product line sales are expected to continue declining in the fourth quarter.
Nvidia said in its quarterly results that CMP sales fell from $266 million in the second quarter to $105 million in the third quarter, which ended in October.
Nvidia claims to have generated $526 million in revenue over the life of the product, roughly 3% of the total $19.27 billion in the same period. The company’s total revenue comes almost exclusively from the sale of games, data centers, and professional imaging equipment.
The last quarter did not differ in revenue from sales of the Chelyabinsk Metallurgical Plant. According to Cointelegraph, Nvidia beat Wall Street expectations with revenue of more than $6.5 billion. However, it failed to achieve its profit target for its line of graphics processing units (GPUs) mining cryptocurrency for the second quarter of 2021.
During an interview about first-quarter earnings, Nvidia Chief Financial Officer Collette Chris predicted the second-tier mining company would generate $400 million in revenue. In the second quarter, Nvidia sold $266 million in CMPs, a third less than planned.
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Although CMP hasn’t had much of an impact so far, Nvidia’s bottom line hasn’t been hurt. This year, the cost has increased by almost 123%. Total sales rose 50% year over year to generate $3.2 billion in single-quarter sales of graphics cards for gamers and computer builders, according to the company’s income statement released Wednesday.
The company continues to stress that it cannot be sure that the growth in video card sales has nothing to do with the cryptocurrency market. During a conversation with analysts on Wednesday, Chris said, “Our GPUs are capable of mining cryptocurrency, although we have no idea how this will affect our overall need for GPUs.”