Back in December 2018, a group of investors sued Nvidia on the basis that they have been misled by the firm over crypto mining demands. The lawsuit followed a disappointing Q3 result which saw a notable drop in the price of shares.

Nvidia claims that analysts had been using an erroneous model that is why they were perhaps surprised by the Q3 results. It said the model assumed a static demand for gaining chips. All that said, the firm has urged the jury to throw out these claims.

Nvidia’s main business focus has been in the gaming industry. However, the increase in popularity of crypto mining saw additional demand for its GPU units. In May 2017, Nvidia developed a mining-specific processor known as Crypto SKU to take advantage of this new booming sector. Sales of this processor were recorded in a general business segment separate from the gaming segment.

Nevertheless, a lot of crypto miners still preferred the use of the GeForce gaming chip. Revenues in the segment continued increasing.

Investors claimed the company leaders made them to believe that higher gaming revenues were away from the crypto mining boom. They added that, analysts were told by the company that the majority of crypto-related skills came from the Crypto SKU.

According to the investors, it wasn’t until August 2108 that Nvidia admitted that crypto-related revenue was as well tied up in the gaming segment. At this juncture, it was obvious that weakening demand for crypto miners was affecting gaming-revenues.

That said, the company says that the investors are cherry-picking some statements from the company and ignoring those which indicate that the company was transparent about its revenue streams. The investors also claim Nvidia was trying to intentionally provide false information on how much it was bringing in through crypto-related sales.

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