The firm’s Second Quarter Fiscal 2020, published on Aug. 16, revealed $2.58 billion in revenue at earnings of $1.24 per share – as compared with $2.2 billion in the preceding quarter.
Major global chipmaker Nvidia, popular with cryptocurrency miners, has outstripped analysts’ expectations with its latest set of quarterly financials.
While the latest results reveal a solid 16% increase over the previous quarter, year-on-year revenue remains down by 17%. Nvidia had earned $3.12 billion during the same period for the fiscal year 2019 amid massive demand for GPUs from cryptocurrency miners.
Still 17% down from crypto-driven highs
The firm’s outlook for the forthcoming quarter is a higher revenue of $2.9 billion, give or take 2 percent.
Alongside developments in its GPU output, the firm also highlighted the progress of its artificial intelligence business, as well as the ongoing profitability of its gaming business segment, which remains the main driver of its revenue.
Buoyed by the latest quarterly results, Nvidia’s stock (NASDAQ: NVDA) rose by 6.2%.
Weathering the crypto seasons
This January, Nvidia had decreased its financial estimates for Q4 for the fiscal year of 2019, citing a decline in mining during the crypto bear market among its reasons.
In December 2018, a class action lawsuit was launched against Nvidia over the losses reported by the company when lower crypto prices diminished demand for GPUs by miners.
The extent of Nvidia’s crypto-driven success during the market’s historic bull run has been the subject of some controversy: earlier this year, a financial analyst claimed that between April 2017 to July 2018 the firm had in fact raked in $1.35 billion more in revenue from mining-related sales than officially stated.
During crypto winter this March, Nvidia said it would manage to sell off the surplus inventory it had accumulated in anticipation of continued mining-driven demand – stock that CEO Jensen Huang had characterized as a “crypto hangover.”
One of Bitcoin’s Earliest Miners Is Dedicating $66M in Crypto to a Fund of Funds
By providing additional liquidity and market making activities to these trading desks amid bitcoin’s scheduled halving event, Bixin seeks to increase its holdings in bitcoin as part of its “unwavering commitment to bitcoin,” the firm said in the announcement.
“We are strong believers in bitcoin and it’s not what we want to see that the bitcoin ecosystem in China and elsewhere are in a silo,” said Liu Fei, who joined Bixin from the Huobi exchange in late 2018 and now oversees Bixin’s mining business and the fund of funds. “We hope the fund of funds can contribute to a better global liquidity structure for the bitcoin ecosystem.”
Founded in 2014 by Wu Gang, who started mining bitcoin since as early as 2009, Bixin has become one of the most known bitcoin wallet and mining pool operators in China.
It scaled up the investment in bitcoin self-mining in the late 2018 and early 2019 bearish market and is currently operating bitcoin mining facilities of about 300 megawatt-hour, roughly 3,000 petahashes per second (PH/s) of computing power that accounts for 2.5% of the Bitcoin network’s total.
Bixin established an investment and financial service arm around 2018 with its own capital and has invested in leading crypto startups in China including MicroBT, a serious contenders against mining giant Bitmain’s dominance in bitcoin miner hardware business.