This article comes from: Bloomberg, the original text:Nvidias Crypto Gold Rush Goes Bust in Lackluster Forecast，Compilation: Qi Ming, with deletions.
reportedreported, Blockstream’s CSO Samson Mow once tweeted that the reason for Bitmain’s rapid financing and only disclosed the 2018 Q1 performance in the financial report is because Bitmain has $1.24 billion in inventory, while the price of S9 has dropped by 85%. Therefore, Bitmain’s loss in the second quarter was 600-700 million US dollars.
Nvidia, which is often compared with Bitmain, joined the cryptocurrency mining industry last year. So, what is its performance in Q2 2018? Bloomberg’s recent article briefly reported on Nvidia’s Q2 cryptocurrency mining revenue and its latest actions:
Nvidias nine-month cryptocurrency gold rush is over.
Sales of graphics chips aimed at miners of cryptocurrencies such as ethereum are drying up faster than expected, the company said.
Jensen Huang, founder and CEO of the company, said in a conference call on Thursday,Despite low revenues from cryptocurrencies, our core platform has exceeded expectations. He also stated that he does not intend to continue the business of encryption mining.
In the second quarter, Nvidia’s revenue from cryptocurrency mining fell by a large proportion, only $18 million in the second quarter. That’s a far cry from previous pre-earnings, when the company’s chief financial officer, Colette Kress, said last quarter that revenue from the cryptocurrency business would hit $100 million in the second quarter.
Investors expressed concern about the sudden collapse of what appeared to be a billion-dollar industry. After all, three months ago, Nvidia said it had $289 million in sales from this business.
The reason why sales were so high at that time,Not unrelated to market demand. The cryptocurrency mining industry has fueled demand for graphics chips.Graphics processors, good at processing thousands of small calculations at once, are great for mining Ethereum and other cryptocurrencies. That fueled demand for Nvidias GeForce chips, favored by gamers for the realism of their build, driving up prices and creating shortages.
Sales soared to a record $3.12 billion as of July 29, although crypto-related revenue fell well short of the companys expectations. Analysts on average estimated $3.11 billion.According to the Nvidia report, itsRevenues in two areas topped analysts estimates. Nvidias game sales rose 52% to $1.8 billion in the second quarter. Data center revenue rose 83 percent to $760 million.
Data center revenue currently accounts for one-fifth of total revenue and is increasingly the driver of overall growth, butMost of the companys profits still come from its GeForce graphics processors. The growth of this market depends on Nvidias ability to allow gamers to use the latest chips to make their experience more realistic.
The encrypted digital currency market fell, and the corresponding business revenue in the second quarter was too low. Nvidia wants to end its gold rush in the encrypted digital currency industry. Odaily will continue to pay attention to Bitmain, which previously announced that it will transform the AI field, how its financial report in Q2 will be, as Samson Mow predicted, with a loss of US$600-700 million in the second quarter.
