By Lucas Williams
The year 2021 has proven to be extremely profiting and record-breaking for the entire cryptocurrency industry. The industry has gained tremendous success and adoption and it is constantly growing larger with the passage of time.
In the year 2021, almost every cryptocurrency has hit an all-time high and the overall market capitalization of the crypto-verse has also crossed the $2.5 trillion mark.
Despite the enormous amount of growth in the cryptocurrency sector, NVIDIA hasn’t witnessed many profits in the third quarter of 2021. When it comes to cryptocurrency mining, the majority of the mining sector is conquered by the GPUs and hardware designed by NVIDIA for mining.
However, the report shared by NVIDIA does not seem to have generated many profits in the CMP (crypto mining processor) line.
In the third quarter of 2021, NVIDIA has announced that its sales for CMP have witnessed a tremendous decline. The chip-making giant has announced that in the third quarter, the sales generated from CMP observed a 60% decline. NVIDIA has announced that it is anticipating an even further drop in its sales in the fourth quarter of 2021.
NVIDIA has revealed that the overall revenue it has generated from CMP sales ever since it began selling them is worth $526 million. NVIDIA had reported that in the second quarter of 2021, the sales it generated were $266 million. However, the sales generated from CMPs in the third quarter of 2021 were just $105 million.
This shows that the sales NVIDIA generated in the third quarter through CMP sales were $161 million less than the sales generated in the second quarter of 2021.
NVIDIA has announced that ever since it started selling CMPs, the overall revenue it has generated is $19.27 billion from selling overall products. As compared to overall sales, the revenue generated through CMP sales in the same period was $526 million.
The revenue generated by NVIDIA in the particular period is only 3% of the total revenue generated by NVIDIA.
The company has announced that as always, the majority of the sales they have generated are through sales of their primary products. These products include professional visualization equipment, data centers, and gaming products.
One of the major reasons behind the fall in sales for CMPs can be attributed to the recent Chinese regulatory crackdown over China-based cryptocurrency mining firms.
The Chinese regulators initiated their action against the cryptocurrency mining firms within the country starting May of 2021. Since then, the country has been kicking out any cryptocurrency mining firms that are operating in the country.
As China was responsible for generating 65% of the total mining power for cryptocurrencies, therefore, NVIDIA is feeling the heat from China regulators’ action.