Graphics card maker Nvidia said its first-quarter 2021 profits were $ 155 million solely from products dedicated to cryptocurrency mining. This is in addition to profits from the sale of its gaming graphics cards, which totaled $ 2.76 billion, up 106% in 12 months.
According to data released by the company itself on Wednesday, May 26, 2021, having been involved in the cryptocurrency mining market with its CMP (crypto mining processor) cards has offered good dividends. The forecasts for the coming months are even more optimistic: According to CNBC, the American company forecasts profits of about 400 million dollars for the second quarter of the year, thanks to its new product intended for minors.
Compared to the first quarter of last year, its total profits increased by 84%, to a total of 5.66 billion USD. For the second quarter of the year, they expect total profit to reach $ 6.3 billion for all of its products, according to the same release.
These figures ratify what Nvidia had announced in April, through a press release in which it claimed that all areas of the company were performing better than expected, including that dedicated to its CMP products.
However, Nvidia CEO Jensen Huang continues to say that the company’s primary market is specialty gaming hardware. He also said he expected cryptocurrency miners – notably ether (ETH) – to stick to his CMP products, and not buy graphics cards originally intended for the games industry. This would avoid the “concurrence”For products which led to price increases and shortages in some countries.
Nvidia and its policy on cryptocurrency mining
To fight against these kinds of problems and satisfy all of its customers, Nvidia has taken concrete measures. First of all, the firm announced that it would limit the hash rate or the processing power of a range of its cards; thus, these could only be used to run video games.
Minors, on the other hand, will have to opt for products from the CMP range, which have no limitations and which, according to Jensen Huang himself, are “more efficient”For this activity.
Nevertheless, Nvidia believes that this competition between its customers will soon reach a balance. The argument that supports this opinion is the decrease in mining capacity resulting from the switch to Ethereum 2, whose method will switch from proof of work to proof of stake, less demanding for video cards.