Nvidia, a multinational technology company, agreed to pay a $5.5 million penalty as part of a settlement with the Securities and Exchange Commission (SEC) announced Friday concerning disclosures of the impact of crypto mining on its gaming business.
According to the SEC’s order, during two consecutive quarters in fiscal year 2018, Nvidia failed to disclose crypto mining as a “significant element” of its revenue growth from the sale of graphics processing units (GPUs).
The company’s omissions in public filings concerning the impact of crypto mining on GPUs despite touting the effect of the mining on its PC original equipment manufacturer revenue gave the “misimpression” growth in the company’s gaming revenue was “not meaningfully impacted by crypto mining,” the order stated.
The SEC charged Nvidia with disclosure failures, including failure to “maintain adequate disclosure controls and procedures.”
“NVIDIA’s disclosure failures deprived investors of critical information to evaluate the company’s business in a key market,” said Kristina Littman, chief of the SEC’s newly renamed Crypto Assets and Cyber Unit, in a press release. “All issuers, including those that pursue opportunities involving emerging technology, must ensure that their disclosures are timely, complete, and accurate.”
Without admitting or denying the SEC’s findings, Nvidia agreed to a cease-and-desist order and to pay the $5.5 million penalty.
A spokesperson with Nvidia declined to comment.