It is no secret that the Taiwan-based computer hardware manufacturer Nvidia has profited significantly from increased cryptocurrency mining. Specifically, the last two years increased interest in cryptocurrency mining has precipitated a marked surge in demand for GPUs.



Steves says Nvidia generated substantially more revenue than stated



However, a recent report is now suggesting that Nvidia may have made even more money from cryptocurrencies than officially stated. This allegation comes from calculations made by an RBC Capital Markets analyst, Mitch Steves.



Moreover, the claims have also been reported by the financial news outlet Market Insider. Nvidia has previously stated that the company earned just over $602 million from cryptocurrency and blockchain-related revenue.



Nevertheless, Steves’ calculations suggest that Nvidia actually generated substantially more than this during the same period. According to Steves, Nvidia supposedly generated cryptocurrency-related revenue closer to $1.95 billion during this time.



In addition to this, Steves also proposed that Nvidia generated revenue to a massive tune of $2.75 billion between April of 2017 and July of 2018.



Steves’ approximation is drawn from calculating the hash rate of Ethereum and other cryptocurrencies, inferring the needed number of graphical processing units (GPUs).



TechSpot speculates Nvidia could be trying to prevent stock impact



Furthermore, Steves calculations were based on the assumption that Nvidia held a whopping 75% market share of the GPUs sold for cryptocurrency mining. He also supposed that Nvidia’s rival AMD was responsible for the remaining 25%.



Although Steves has ceded that there is no iron-clad way to prove whether his numbers are accurate or not, they make a compelling case. For one, Steves has highlighted that a fresh earnings report from AMD lines up with his expectations.



Although it would seem odd for Nvidia to purposefully mask revenue, there is a reigning theory for why this might indeed be the case. Nvidia’s stock took a 5% fall in November of 2018 when the company’s CEO announced that Nvidia’s near-term results would be impacted by ”excess channel inventory post the cryptocurrency boom.”



Subsequently, the technology news website TechSpot has suggested that potential stock impact could be a reason for Nvidia to ”mask large fluctuations in revenue.” Nevertheless, it should be noted that all of this is currently only a theory.



With that being said, Cointelegraph reports that Nvidia has declined to comment on the story – suggesting that they have not, at least not yet, refuted these allegations.

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