Colette Kress, the Chief Financial Officer (CFO) of Nvidia, discloses that retrospectively the alteration of its consensus mechanism and the decline in the prices of crypto assets have affected the order for the company products in such a way that the company could not account.
On Wednesday, the company announced after uploading its quarterly report that the demand for its products had fallen substantially and that it cannot say precisely how mining cryptocurrency played a part.
Nvidia Q2 Financial Report
The corporation presented its quarterly financial report for May, June, and July yesterday. According to the report, Nvidia’s total turnover fell by nineteen percent over the last quarter, falling to $6.5 billion and summing up its net income at around $656 million, a fifty-nine percent decrease.
Furthermore, the gaming department of the organization’s revenue was estimated at $2.04 billion, adding income from bids for its state-of-the-art GPUs. So, this revealed a 44% discrepancy between the first and second quarters. Kress ascribed the downturn situation of the company to the inauspicious condition of the market.
By market, she was also referring to the crypto market that had faced a lot of downsides lately. The executive vice president shared constrained openness regarding how mining has contributed to the mitigated product demand of the company in the last quarter.
GPUs for Crypto Mining
In a statement released, she identifies that the GPUs can mine cryptocurrency but cannot acknowledge to what extent it would affect the demand for the product. She also revealed that mining got attenuated at some point and had a similar effect on the company in the area of their finance.
The GPUs were designed by the organization to play games. But, due to the niftiness of these Graphics Processing Units for mining crypto, it spiked a high demand for it which in turn causal the price of their shares to soar by three hundred and twenty percent over five years.
Changes in Consensus Mechanism Affect Demand for Nvidia’s Products
The volatility experienced in the crypto market in the form of unstable market conditions such as rising and falling of crypto assets worth in time and the upgrade of the processes associated with confirming transactions, plus Proof-of-Work and Proof-of-Stake, has antecedently affected the order placed on their products and their capability to precisely evaluate it.
The Ethereum merger happening on September 15, which would spur the network to transition from Proof-of-Work to Proof-of-Stake, could wind up pushing the demand for GPUs and other crypto mining hardware downward. If this occurs, the company could take further beat downs on sales of its CMP 170 HX, now worth $4,695.
Other cryptocurrencies like Bitcoin, Dogecoin, Litecoin, and Monero continue to function on the P-o-W mechanism without any known intention of switching to the P-o-S mode in posterity.
In other news, NASDAQ records a 5% descent in the price of Nvidia shares within five days.