The Nvidia mining processor revenue for cryptocurrencies dropped by 77% in the last quarter of 2021 from $105 million to $24 million as we can see more from the latest cryptocurrency news today.
The computer chip manufacturer Nvidia saw its revenue from crypto mining hardware drop from $105 million in the third quarter to just $24 million in the fourth quarter which marks a drop of 77%. according to the Nvidia filing, the revenue from the crypto mining processor for 2021 totaled $550 million of 0.2% of the total revenues of the $26.91 billion for the time being. This is in line with the CFO Colette Kress’ prediction that the revenue from the CMP will decline every quarter to negligible levels in Q4.
The CMP sales performed below expectations over the year despite the strong start of the year with NVIDIA raising its Q1 revenue estimate to $150 million with the Q2 sales revenues falling short of the initial estimate of $400 million and the company taking in just $266 million in the second quarter than in the third one slipping further to $106 million. That will likely bother Nvidia too much because its total fiscal year revenue for 2021 was up by 61%.
Nvidia developed the CMP to reduce demand from miners for its Graphics Processing Units and although BTC miners moved on from GPUs to ASIC miners, it remains cost-effective to mine other crypto assets like Ethereum using GPUs. Facing backlash from the core consumer base of PC gamers, Nvidia tried to limit its GPUs to make them less desirable for miners before launching CMP in 2201. in the filing, Nvidia stated that while its GPUs are capable of crypto mining, it has limited visibility into how much this can impact the overall GPU demand due to volatility in the crypto market and changes in the method of verifying transactions like Ethereum’s impending shift from Pow to PoS.
The chip manufacturer doubled down on the commitment to limiting crypto mining on the GPUs adding that almost all desktop NVIDIA Ampere architecture GeGofrce GPU shipments are Lite Hash Rate to help direct the GeForce GPUs to the gamers. Other GPU manufacturers like AMD and Intel already said they will not follow suit. Nvidia’s CMP revenue woes don’t seem to have dissuaded chipmakers from venturing into mining and Intel even announced that it was developing a new energy-efficient BTC mining chip.
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