Nvidia released its financial report for the fourth quarter of the fiscal year 2022 shows that revenue from cryptocurrency mining processors has dropped by 77%. Revenue went down to $24 million from $105 million in the previous quarter.
Nvidia has published its financial report for the fourth quarter of the fiscal year 2022, and as far as cryptocurrency mining-related revenue goes, the numbers aren’t good. Revenue from cryptocurrency mining units dropped by 77% during the quarter, though other revenue streams did well.
Nvidia crypto GPU revenue tanks
After saying that it has limited visibility in how much crypto mining impacts overall GPU demand, the report notes that cryptocurrency mining processor revenue went down to $24 million in the quarter, which is down from $105 million in the previous quarter. Total revenue for this stream was $550 million.
Other highlights from the financial report include a record quarterly revenue of $7.64 billion, which is 53% higher year-over-year. Fiscal year revenue also grew by 61% to $26.91 billion. Gaming, data center, and professional visualization CEO Jensen Huang said that many new products, applications, and partners were on the horizon, though he did not offer any specifics.
Nvidia GPUs have always been in hot demand for cryptocurrency mining, though this has died down somewhat over the past 12 months. Nvidia GPUs saw a reduced hash rate to prevent use in crypto mining in May 2021, and since then, there has been this decline. However, it did create crypto-specific graphic cards to aid the mining industry.
Proof-of-stake and other protocols to ease GPU demands?
The cryptocurrency industry has long been trending towards other consensus protocols. Proof-of-work has not been democratic, with large amounts of capital required just to break even. Proof-of-stake and other algorithms have become popular in the wake of this, and this should only increase as energy consumption concerns grow.
The power consumed by bitcoin mining has become one of the top arguments posed by lawmakers and crypto critics to oppose the market. An EU finance regulator proposed a ban on proof-of-work to curb energy usage, which is one of the more drastic actions taken. Kosovo has banned crypto mining altogether.
It is certainly a concern, and there are steps being taken by groups to mitigate the problem. One such group is the Bitcoin Mining Council, which aims to work towards sustainable energy solutions.
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