Mining Represents Sales Worth up to $ 300 Million on NVIDIA RTX 3000

NVIDIA has shown the financial report for 2020, which has left a brutal fact about mining: the sales revenue of the RTX 3000 for mining would amount to $ 300 million dollars. This has been expressed by Colette Kress, the company's chief financial officer.

Colette Kress gives us today's headline after stating that revenue contributed by miners in Q4 2020 would range from $ 100 million to $ 300 million. In fact, he has made his own prediction for the first quarter of 2021 with a downward trend. In the end, it is difficult to assess where all sales come from because the supply chain is long.

Mining leaves up to $ 300 million in NVIDIA's coffers

Colette Kress, NVIDIA CFO

NVIDIA's 2020 financial report has been published, which leaves a net profit of $ 4.332 billion, although revenue was $ 16.675 billion. The GeForce business achieves an increase of 56% year-on-year and reaches 7.759 million dollars in all of 2020.

The emergence of the mining as a "threat" to the stability of the NVIDIA RTX 3000 graphics card market is critically important: it causes shortages and raises prices by more than 150%. That said, I want to use a cliché: "neither the good guys are that good, nor the bad guys that bad." This means that the reasons for the shortage are not exclusively due to mining, but that is another topic that we have already talked about.

This news focuses on the money that mining has left in NVIDIA, a fact that is important. The company has announced a line of dedicated graphics cards for mining, and will also limit the hardware and software of the next RTX 3000 (those to be launched, including RTX 3060) so that it is not profitable to mine with them.

So Colette Kress, NVIDIA CFO, says that the revenue from mining in Q4 2020 is $ 100 million to $ 300 million, why a $ 200 million band? You have to see the issue in perspective:

  • NVIDIA eCommerce is not only B2C (business-to-consumer), it is also B2B (NVIDIA-assemblers).
  • It is difficult to know the destination of the RTX 3000 that each user buys, as there are individuals who will have bought a couple of GPUs to mine at home.
  • Accounting for the sales that each assembler has had is complicated.

On the other hand, Kress has given his prediction for NVIDIA's revenue from mining in Q1 2021: $ 50 million. It may still be too high a figure for many, but it is a market that must also be supplied.

The bottom line is that NVIDIA doesn't want miners to meddle in the gaming world, and will therefore limit GeForce (by SKU, BIOS, and software) and release the NVIDIA HX. Therefore, NVIDIA's strategy is not to block miners, but to offer them specialized GPUs, will they have enough stock to meet that demand?

What do you think of these figures? Do you think there will be more stock and prices will normalize?

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