Report: Analyst Finds Nvidia Earned $1.35 Billion More in Total Crypto Revenue Than Stated

Taiwan-based computer hardware producer Nvidia reportedly earned nearly $1.35 billion more due to crypto and blockchain than it had stated.

Steves reportedly said in a note released on Jan. 30 that that according to his calculations, Nvidia generated about $1.95 billion in total revenue related to cryptocurrency and blockchain, noting that the official company's statement said that it generated around $602 million over the same time period.

His calculations reportedly revealed that the Nvidia's total crypto-related revenue from April 2017 to July 2018 should be around $2.75 billion.

According to Market Insider, Steves assumed Nvidia had a 75 percent market share of GPUs sold for mining purposes, while IT company AMD controlled the rest.

Before the release of this report, an analyst had stated that the company could still be facing problems due to a "Crypto hangover."

According to the article, Steves suggests AMD's report implied the company had $234 million in the first quarter of last year, which matches about one-quarter of the total crypto revenue, which would be in line with his calculations.

When Nvidia released its earnings report for the third quarter of last year in November 2018, the founder and CEO of the company Jensen Huang said that the company's "Near-term results reflect excess channel inventory post the cryptocurrency boom, which will be corrected."

Commenting on the recent RBC note, tech news website TechSpot suggested that "The steep falls [in stock] are a strong incentive for Nvidia to mask large fluctuations in revenue."

As Cointelegraph reported last month, Nvidia decreased its financial estimates for Q4 for the fiscal year of 2019, citing the decline in mining alongside weaker gaming and data center sales as the causes.

At the end of December of last year, a class action lawsuit was launched against Nvidia over the losses reported by the company when lower crypto prices diminished demand for GPUs by miners.