crypto mining news

Nvidia Bullish About The Mining Industry, Set To Clear Inventory

Nvidia, one of the major manufacturers of GPU mining rigs are quite bullish about its future and believes the loss that it incurred during the longest crypto winter would be compensated during the next fiscal of 2020. The company is also set to clear its inventory in this quarter after registering heavy losses in the last one.

Nvidia is still working with its stockpile of unsold parts, but are pretty confident of being on track with the set goals in the coming quarter and quite optimistic for 2020. This was resonated by the Chief Financial Officer Colette Kress at a company event in San Jose, California.

As per the company’s vision, they are on track to either meet their financial forecasts or slightly down from their previous year profits. The forecast suggests a decline of 4 percent.

The CEO of the company, Jensen Huang is quite optimistic and trying to convince the wall-street investors that their revenue would surge past its three-year profit margin once the remaining stock in the inventory is used up by the customers. Nvidia mainly deals in producing semiconductor chips or graphics cards for providing high rendering and performance capability for gamers.

The Crypto Winter has Hit the Chip Makers Hard

2018 second half was not just bad for the crypto investors but the biggest impact was seen on the mining community especially on the mining chip-makers like Nvidia, who sales almost crashed due to crashing market prices.

Cryptocurrency mining is the process of verifying transactions, upon the verification, the miners receive an incentive called mining or block reward. The process of mining requires specialized mining rigs manufactured by companies like Nvidia and Bitmain. These mining rigs do not come cheap and can easily cost from a few hundred dollars to thousand dollars, depending upon the efficiency of the chip.

The bearish market cut down the prices of most of the cryptocurrencies by 80%, which subsequently made it impossible to mine cryptocurrencies with a substantial profit, which in turn brought down the demand for the mining chips produced by these manufacturers.

Nvidia was not the only manufacturer hit by the bearish markets, Bitmain which at one point made $1 billion through its mining operations and product sale were so hugely impacted that they had to make a fresh start after the setback.