Nvidia to Quit Mining Race Due to Low Profit

At the same time, Nvidia's main business is showing solid results
23 August 2018   526

Leading manufacturer of video cards and chips Nvidia announced its decision to stop focusing on the cryptocurrency minning. Main reason - low profit. This is reported by CCN.

CFO Nvidia Colette Kress said that until the end of 2018 the company does not expect sales growth in this segment.

We believe we’ve reached a normal period as we’re looking forward to essentially no cryptocurrency as we move forward. Our revenue outlook had anticipated cryptocurrency-specific products declining to approximately $100 million, while actual crypto-specific product revenue was $18 million, and we now expect a negligible contribution going forward.

Colette Kress

CFO, Nvidia

Nvidia CEO Huang Jenshun also noted that the profitability of minning chips, which the company produces, is declining due to the market decline. At the same time, Nvidia's main business is showing solid results.

Thus, in the second quarter, Nvidia's sales in the gaming sector grew by 52% to $ 1.8 billion, while revenue from data centers grew by 83% to $ 760 million.

Bitmain to File IPO Application

The application was sent to Hong Kong Stock Exchange (HKEX)
27 September 2018   423

The largest mining company Bitmain has submitted to the Hong Kong Stock Exchange (HKEX) listing application for an initial public offering (IPO), according to CoinDesk.

The application is a draft option, and some of its details, in particular the number of shares offered for sale and the immediate date of the IPO, are still in the process of editing.

Nevertheless, the document indicates that last year Bitmain's revenue was $ 2,517,719,000. This figure is higher than in 2016 ($ 277,612,000). As of June 30, 2018, the company's revenue was $ 2,845,467,000.

The application said that in 2017 the gross profit of the company was $ 1 212.7 million, which is also higher than in 2016 ($ 151,351,000).

Earlier, the head of Bitmain, Jihan Wu, expressed his indignation over the actions of the company's chief financial officer, who disclosed the figures for the first quarter 60 days after his end, and not after 90, as he had expected.

The media suggested that in the run-up to the IPO the publication of such information could have a negative effect on the company's investment attractiveness.

In addition, the document confirmed the media's information that Bitmain owns a 3% stake in Opera's Internet browser thanks to an investment of $ 50 million.

The application also indicates that the underwriters of the IPO are China International Capital Corporation Hong Kong Securities Limited, Commerce and Finance Law Offices, Maples and Calder LLP, KPMG and Frost & Sulliva