The manufacturer of electronic devices and computer chips, Nvidia, announced that it is going to retire at the time of its brief invasion of the cryptocurrency mining market after it saw its sales fall in the second quarter of this year.
After an expected profit of $ 100 million for the second quarter of 2018 and meeting only $ 18 million, the California-based company claimed that in the second half of the year the cryptocurrency mining activities would not be material for the company. of the fiscal year. "During the same fiscal quarter last year, the sale of mine chips reached $ 289 million dollars.
According to a CNBC report, Colette Kress, Vice President and CFO of Nvidia, confirmed that the company is taking the decision to retire from the market in which it previously participated in competing with AMD, another large manufacturer of graphic processing cards preferred by miners. .
On the other hand, Jensen Huang, CEO of Nvidia, assured in a private meeting with investors that they had received benefits during the previous periods, "but at the moment we are of the opinion that this will not be profitable" for the second half of the year. year.
The projections were made in January, when the market had a generalized value of $ 820 billion dollars, but the constant downward trend during this year led to cryptocurrencies having set their total market value at $ 214,330,259,805, according to data from CoinMarketCap, which means a decrease between 70% and 80%. Earlier this year, Bitcoin was priced at $ 17,500. Now it remains for about $ 6,000.
Nvidia experienced tremendous growth in 2017, thanks in part to the growing demand for equipment compatible with cryptocurrency mining.
The increased difficulty of processing the various networks has in turn made it impossible for many investors to follow that direction, because many mining activities are no longer profitable. However, the increase in the hashing speed of many cryptocurrencies only means that more miners are integrated into the network, as well as an increase in transactions.
Bitmain, one of the strongest on the market, continues to benefit and has profitability. After being valued at $ 12 billion dollars and an annual return of $ 3 billion to be expected for this year, it was reported that they had a profitability of $ 1 trillion dollars in the first half of the year.
Bitmain intends to make an Initial Public Offering (IPO) of its shares to enter the global equity markets. However, it is also in an uncomfortable situation because of the huge amount of BCH (Bitcoin Cash) that it has in its cash and that it can not sell in its entirety because it would affect the market of this cryptocurrency.
According to Reuters sources, graphical processing cards (GPU cards) for video games keep Nvidia on the market for those devices. Analysts say that Nvidia will certainly launch new chips for games this year. In the same way, these chips are used in huge data centers; Some of the major customers in this area are Microsoft, Amazon Web Services, Azure and Google.
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