Nvidia Is Blocking Efforts for Crypto Mining

Nvidia Is Blocking Efforts for Crypto Mining

Cryptocurrency is hot button news. Ethereum, Bitcoin and even Dogecoin has been on a steady rise, with no little help from Mr Musk himself. Nvidia may not have taken the situation seriously back in 2018, but now they’re facing pressure to get it right this time.

The company recently announced that its revenue for the past quarter has reached $5 billion, a 61% rise from last year’s $3.11 billion.

Collette Kress, Nvidia’s Chief Financial Officer stated that analyst estimates suggest, anything from $100 million to $300 million of that revenue, came from cryptocurrency mining sales alone. Kress noted that currently, the company is unable to “accurately track or quantify” the end use of the cards as they first go to AIB partners before distribution.

Nvidia Is Blocking Efforts for Crypto Mining
Nvidia RTX 3060 | Source: Nvidia

Kress did outline the steps the company is taking regarding cryptocurrency:

Last week we announced a new line of NVIDIA CMPs or cryptomining processors. Shipments will start in March. CMPs lack display outputs and have other optimizations that improve crypto mining power efficiency. For Q1, we estimate that CMP will contribute approximately 15 million. We plan to sell these products to industrial miners. We will quantify their contribution each quarter for transparency.

Collette Kress, CFO, Nvidia

They hope that placing mining limiters on the RTX 3060 for Ethereum will allow the cards to be accessed more by gamers rather than crypto miners. It should also give Nvidia a better understanding of exactly how much revenue comes from the miners. This is to make it easier to understand the card’s end use, capitalise on the info and also make it so that not only gamers benefit from the cards.

Nvidia Is Blocking Efforts for Crypto Mining
Nvidia RTX 3060 | Source: Nvidia

I think proof of work is going to be around for a bit. We developed CMP for this very reason.

Jensen Huang, CEO, Nvidia

The Cryptocurrency Mining Processors (CMP) have been developed by Nividia specifically for crypto miners. For now, it has been optimized for Ethereum, but we expect the company to either expand their functionality or release new processors for the various other cryptocurrencies.

It looks like Nvidia is trying to reduce the mining power of its gaming cards so their CMPs become the processors of choice for crypto miners. While the blocks placed on the RTX 3060 are just software based and will most likely be unlocked soon, focusing on cryptocurrency mining may be a great new field for Nvidia to explore.