See below for an excerpt from a financial mailer (Finimize) that I get. For the short version, see the title!
What’s Going On Here?
According to microchip maker Nvidia, worth $150 billion, the cryptocurrency boom is over. The company’s shares fell by 5% on Friday as it predicted lower sales ahead than investors were expecting.
What Does This Mean?
Nvidia’s quarterly results as a whole were actually better than expected – but the company’s forecasting lower sales of its cryptocurrency chips going forward. It sold just $18 million worth of the chips (down from almost $300 million in the previous quarter), which are used in cryptocurrency “mining” – where computers run complex mathematical equations that create new coins (such as bitcoin). Mining is an expensive process, so the falling value of cryptocurrencies this year may have made some miners think twice and dented crypto chip sales (since the value of the coins being mined has to be worth the cost to mine them – miners either buy things with their coins, sell them for a profit, or hodl).