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   672

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.

Jihan Wu to Leave Bitmain's Board, Media Reports

According to the lawyer of Bitmain, with the transition to a new position, Wu lost his right to vote in the decision-making process of the board of directors
14 November 2018   56

The head of Bitmain Jihan Wu, resigned from the company's board of directors and moved to the position of supervisor, 8btc reports

According to the lawyer of Bitmain, with the transition to a new position, Wu lost his right to vote in the decision-making process of the board of directors, in connection with which he could no longer influence the management of the company.

According to the published document, in addition to Wu, three more functionaries left the management team. The changes allegedly took effect on November 7th.

The reasons for this decision were not disclosed. However, according to some rumors, Jihan Wu entered into an unspoken confrontation with Bitmain co-founder Mikri Zhang, since he is focused on product development in the field of AI and chip production.

In September, Bitmain filed an official application to the Hong Kong Stock Exchange for an IPO. It is currently under review.

In November, Bitmain announced plans to install 90,000 Antminer S9 devices in the Xinjiang Uygur Autonomous Region before the upcoming hard fork of Bitcoin Cash on November 15.