Nvidia crypto mining processors revenue loses footing

Crypto mining industry is continuing to expand rapidly. Following the notable passive gains being generated from such operations, the revenue of Nvidia had spiked over the past year. However, as per Nvidia’s latest financial report for the fourth quarter of the fiscal year 2022, it is observed that revenue from cryptocurrency processors has dropped significantly  by more than 77%. And the total revenue of the firm went down from $105 million to only $24 million in the previous quarter.

Crypto mining unit’s sale plunged

According to the financial report published by Nvidia, it is observed that its crypto mining revenue has tumbled. Compared with the previous report, the numbers are not good. The units’ revenue dropped by more than 77% during the quarter though other revenue streams did well.

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Moreover, the reports noted that the crypto mining processors revenue went down to$24 million in the quarter, after saying that it has limited visibility in how much crypto mining impacts overall GPU demand.

The report also underscored that the quarterly revenue grew by more than 53%. Simultaneously, the fiscal year revenue also surged significantly. Although the demand has died over the past 12 months, the demand for such units has always been hot. In the current scenario, the GPUs have also witnessed a reduced hash rate to prevent use in cryptocurrency mining in May 2021. Since then, the decline is being witnessed.

Why has the GPU demand reduced?

Although the mining of digital currencies like Bitcoin is way profitable, many are concerned due to the high power usage by the industry. Following such environmental impacts of mining Bitcoins many governments and high profiled individuals have shown concerns.

Following such climatic concerns last year the ecosystem also witnessed a significant crash. As the BTC mining power usage has become a hot argument, several financial regulators are proposing to prohibit Proof-of-Work based mining mechanisms to curb energy usage.

The introduction to Proof-of-Stake following the concerns related to PoW based mechanisms and other algorithms have become popular. And the popularity of these protocols are continuing to surge as the concerns related to energy consumption are rising. Hence, the demand for GPU seems declining which ultimately, affected Nvidia’s unit revenue.