Nvidia faces Inventory Problems with Low Mining Demand

The company foretold a market slow down, but however it overestimated crypto mining demand
21 June 2018   1897

After a significant growth in 2017, the crypto market is afflicted from a massive slow down this year. This has not only influenced on the crypto investors but made a massive impact on other spheres as well. One such industry is the GPU manufacturing industry which demonstrated a huge rise in demand last year. 

Jen-Hsun Huangm, CEO of American chip manufacturing giant Nvidia has declared at Computex 2018 that the company will not come up with any new GPU for “a long time.” This decision was caused by the falling market requirement for Nvidia GPUs especially the GeForce 10 series cards that are very popular among the crypto miners and gamers. Also, one of its Asian OEM partners returned 300,000 units of GPUs to Nvidia that added fuel to the firm’s woes.

We’re working really hard to get GPU down to the marketplace for the gamers and we’re doing everything to advise retailers and system builders to serve the gamers. And so, we’re doing everything we can, but I think the most important thing is we just got to catching for supply.
Jen-Hsun Huangm
CEO, Nvidia

In 2017, Nvidia’s GeForce 10 GPU got big popularity especially among Ethereum and other altcoin miners. This finaly deprived the gamers of gaining their hands on these GPUs. Many reports also revealed that Nvidia has inflated prices of graphics cards in the wake of growing craze in crypto mining.

Strong demand in the cryptocurrency market exceeded our expectations. Cryptocurrency mining accounted for a higher percentage of revenue than the previous quarter. Keep in mind that’s very difficult for us to quantify down to the end customers’ view. Our main focus remains on our core market, as cryptocurrency will likely remain volatile.
Colette Kress
Executive Vice-President, Chief Financial Officer, NVIDIA

Nvidia also foresaw the impending downturn of the mining business and assumed that the decreasing market demand will pull the prices of their GPUs after Q3 2018.

Argo Blockchain to Report on x10 Revenue Increase

For the 2019, the company received Bitcoin mining revenue of £ 8.5 million, in 2018 it was £ 760,000
20 January 2020   122

Bitcoin mining company Argo Blockchain said this Monday that its revenue from its core business in 2019 increased 10 times. According to a press release on the website of the London Stock Exchange (LSE), where Argo shares are traded, for the first full year in business, the company received revenue of £ 8.5 million compared to £ 760,000 in 2018.

Argo listing on the main LSE market took place in August 2018. The data presented were not audited - the reports after the audit will be available in April.

The company clarifies that in the fourth quarter of 2019, it mined 432 bitcoins, which is six bitcoins higher than in the third quarter. However, in the last quarter, the company's revenue fell to £ 2.66 million, while in the third quarter it was £ 3.63 million.

Our mining operations continued to generate industry-best mining margin in the last quarter despite a softening in market conditions from the previous quarter. Our state-of-the-art mining platform is performing as expected and with the expansion of our mining network on pace, along with the recent rise with the price of Bitcoin, Argo is well-placed for a strong year ahead.

 

Peter Wall

Argo Blockchain CEO

 The company is increasing mining capacity in anticipation of halving and currently has 13,364 devices, including 6,375 Bitmain Antminer T17s, which were installed on January 1. By the end of the quarter, Argo intends to add another 3,625 of the same miners. It is estimated that with a full set of 17,000 devices, its computing capacity will exceed 650 petaheches.