NVIDIA's Mining Chip Revenue Plunges 77% 

Popular NVIDIA chipmaker (NASDAQ shares: NVDA) revealed that revenue from sales of its crypto mining processor dropped to $ 24 million from $ 105 million in the fourth quarter of the year, which ended on January 30. 

This marked a 77% drop from $ 105 million in revenue made in the third quarter of last year. 

NVIDIA revenue drops 77%

The microchip maker began manufacturing cryptocurrency mining processors in February 2021. This was an attempt to secure its GPUs for gamers so they are not converted for cryptocurrency mining uses.

According to the company, CMP's total revenue in the fiscal year was $ 550 million.

While gaming GPUs can be used for crypto mining, the company has decided to provide CMP. This is so that mining requests do not reduce the number of GPUs available to gaming customers. 

NVIDIA says they don't have enough information on how crypto mining affects overall GPU demand.

In order to prevent cryptocurrency miners from using GPUs, NVIDIA has added hash rate limiters to its GeForce GPUs. The company also said it will introduce hash rate limiters for all of its amp-based products. This will prevent those products from being used for crypto mining.

Authorities question Crypto Mining application 

The decline in NVIDIA's CPM revenue over the year stemmed from a number of factors, including the overall reduction in demand for mining. The high energy consumption resulting from Bitcoin mining has led many interested parties to criticize the space. 

In recent times, the demand to switch to a Proof of Stake mechanism has increased.

Recently, European Securities and Markets Authority (ESMA) Vice President Erik Thedéen called for a ban on proof of work mining in Europe saying proof of stake is a better option. Furthermore, the Hungarian Central Bank has also called for a ban on crypto mining among EU nations.

Several countries have also banned crypto mining for this exact reason. Kosovo recently banned crypto mining after it caused blackouts due to high electricity use. 

Kazakhstan, a country that has been the hotspot for crypto miners after China banned the activity, also rejected crypto mining in January. This followed the shortage of electricity supply amid political protests in the country.