In recent news pertaining to cryptocurrency mining, Nvidia has witnessed a drop in its share price after announcing an unexpectedly modest earnings outlook – partly driven by reduced demand for mining hardware. Also, the World Digital Mining Summit has been scheduled for late September in Tbilisi, Georgia, and reports continue to surface detailing opportunistic students using college electricity to mine crypto.
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Nvidia Shares Drop After Reduced Crypto Sales Fuel Declining Profits in Q2
The price of Nvidia stock fell by 6 percent on Thursday following the announcement of lower-than-expected revenue guidance. Despite the bearish response, the company reported better-than-expected earnings. As of this writing, Nvidia’s shares are valued at $247.25 USD each.
Nvidia announced revenue projections of $3.25 billion for Q3 of 2019 – roughly 2.7% less than analyst estimates of 3.34 billion for the third quarter, according to Thomson Reuters.
Nvidia posted earnings of $1.76 per share, excluding certain items, up from earnings of $1.66 per share that was anticipated by analysts, and revenue of $3.12 billion – up from an expected revenue of $3.10 billion. Nvidia’s revenue grew by 40 percent year-over-year for Q2 2018.
Whilst the company’s data center and automotive segments exceeded revenue prediction, the company’s revenues associated with products and intellectual property pertaining to cryptocurrency mining ($116 million) were 70 percent lower than those anticipated ($188 million).
Colette Kress, the executive vice president and chief financial officer of Nvidia, stated: “Our revenue outlook had anticipated cryptocurrency-specific products declining to approximately $100 million while actual crypto-specific product revenue was $18 million, and we now expect a negligible contribution going forward.”
The company’s chief executive officer, Jensen Huang, stated: “We benefited in the
