Popular chipmaker NVIDIA has revealed that revenue from the sales of its crypto mining processor dropped to $24 million from $105 million in the fourth quarter of the year, which ended on January 30.
This marked a 77% drop in value from the $105 million revenue realized in the third quarter of last year.
NVIDIA Revenue Drops by 77%
The microchip maker started producing mining processors for cryptos in February 2021. This was an attempt to protect its GPUs for gamers so that they won’t be converted for crypto mining uses.
According to the company, the overall revenue from CMP in the fiscal year was $550 million.
Although the gaming GPUs can be used for crypto mining, the company decided to provide CMP. This is so that mining demands won’t reduce the number of GPUs available for gaming customers.
NVIDIA states that it doesn’t have sufficient information on how crypto mining affects overall demand for GPUs.
In order to stop crypto miners from using GPUs, NVIDIA added hash rate limiters to its GeForce GPUs. The company further stated that it’ll introduce hash rate limiters for all its ampere-based products. This will prevent those products from being used for crypto mining.
Authorities Question Demand for Crypto Mining
The drop in revenue of NVIDIA CPMs over the year results from various factors, including the overall reduced demand for mining. The high energy consumption resulting from Bitcoin mining has led to many stakeholders criticizing the space.
In recent times, the demand for a switch to a Proof of Stake mechanism has increased.
Recently, the Vice-Chair of European Securities and Markets Authority (ESMA) Erik Thedéen called for a ban of proof of work mining in Europe saying that proof of stake was a better option. Furthermore, the Hungarian Central Bank has also called for a ban on crypto mining among EU nations.
Several countries have also banned crypto mining for this exact reason. Kosovo recently banned crypto mining after it caused blackouts due to high electricity use.
Kazakhstan, a country that’s been the hotspot for crypto miners after China banned the activity, has also pushed back against crypto mining in January. This followed the shortage in electricity supply amidst the political protests in the country.
This article was originally posted on FX Empire
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