NVIDIA’s video card manufacturing and cryptocurrency mining are under threat — all because of sanctions

A new package of US sanctions against China includes a ban on the supply of production accelerators based on GPUs, which means that NVIDIA’s graphics card manufacturing and cryptocurrency mining are now under threat.

As it has become known, the American graphics card company NVIDIA is going through hard times. The tech giant’s net income has dropped by 59% and now stands at $ 656 million, all due to the suspension of video card shipments to China, where they are actively fighting mining. The new US sanctions will stop the development of the Hopper production accelerator, which NVIDIA planned to sell in the Chinese tech market. The company had hoped to launch Hopper in the last quarter of 2022 and generate about $ 4 billion in revenue through sales in China.

According to analyst Matthew Ramsay, NVIDIA is finding it harder to compete with other video card companies. If NVIDIA does not continue to receive the desired profits, the company may begin to seriously consider the termination of its activities, which will significantly affect cryptocurrency mining. After all, NVIDIA GPUs are often used by cryptocurrency miners for mining.

It is worth noting that in addition to sanctions, NVIDIA’s sales are also affected by falling cryptocurrency prices. Miners who no longer receive the desired profit disconnect their graphics cards and sell them on retail websites. Mining directly depends on the value of cryptocurrencies in dollars, as miners pay electricity bills and other operating expenses in fiat.