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Facebook Fined 7 Minutes’ Revenue for Data-Mining Scandal

July 11, 2018 |

Facebook is facing its first financial penalty for allowing the data-mining firm Cambridge Analytica to forage through the personal data of millions of unknowing Facebook users. A UK government office that investigated the Cambridge Analytica scandal has announced its intention to fine Facebook $ 663,000 for contravening the law by…
Newser

Mining Hardware Supply Chain Seeks Alternative Revenue Streams Amid Declining Demand

June 15, 2018 |

Mining Hardware Supply Chain Seeks Alternative Revenue Streams Amid Declining Demand

With demand for cryptocurrency mining hardware having sharply declined following the onslaught of 2018’s bear market, reports are indicating the companies operating in the supply chain behind mining hardware are increasingly seeking alternative revenue streams to offset falling demand from the mining industry.

Also Read: SEC Executive: ‘Cryptocurrencies with Decentralized Structures Not Securities’

Cryptocurrency Bubble Pops for Mining Hardware Supply Chain

Mining Hardware Supply Chain Seeks Alternative Revenue Streams Amid Declining DemandBetween April 2017 and March 2018, the virtual currency mining hardware manufacturing industry appeared unstoppable. Last year, the multi-year cryptocurrency bull trend was accelerating toward its peak, drawing with it unprecedented media coverage of the virtual currency markets.

With demand for mining hardware at unprecedented levels, companies operating within the supply chain manufacturing mining devices were reporting record sales and witnessing all-time high stock prices. At one point, China’s leading ASICs supplier, Bitmain, was briefly ranked as one of the top ten clients of the world’s largest semiconductor manufacturer, Taiwan Semiconductor Manufacturing Company (TSMC).

Profit Projections Slashed

Mining Hardware Supply Chain Seeks Alternative Revenue Streams Amid Declining DemandAccording to a report from Digitimes, the party is well and truly over for Taiwanese suppliers of graphics processing units (GPUs), who “have seen their inventories pick up rapidly, and their sales prices have declined to the levels seen in early 2017.” The report, citing “industry sources,” asserts that “[GPU] suppliers may be forced to return to the gaming market to renew growth momentum in second of the second half of 2018.”

In April, CNBC reported that Wells Fargo Securities had slashed its profit forecast for Nvidia due to “falling demand for GPUs [graphics processing unit] used in cryptocurrency,” according to Wells Fargo analyst, David Wong. Later that month, TSMC reduced its projected earnings in response to waning demand for mining hardware. Taiwan’s Gigabyte Technology is also expecting to sell less than 10 million motherboards in 2018 due partly to shrinking demand for mining hardware.

ASIC Manufacturers Turn to AI for Alternative Revenue Stream

Mining Hardware Supply Chain Seeks Alternative Revenue Streams Amid Declining DemandWhilst GPU manufacturers are able to refocus their efforts on the gaming market, suppliers of application specific integrated chip (ASIC) miners are exploring alternative revenue streams in order to offset declining demand for mining hardware.

In a recent interview with Fortune, the co-founder and co-chief executive officer of Bitmain, Jihan Wu, was asked of the company’s “priorities over the next few years” – to which Mr. Wu replied investing further resources in the research and development of mining rigs, that “Bitmain will also start to deploy lots of artificial intelligence products into the market.”

Canaan Inc., the world’s second largest ASIC manufacturer, is also looking to the artificial intelligence (AI) markets to bolster its profits, with the prospectus for the company’s proposed initial public offering indicating that it plans to focus on producing chips for AI applications.

Do you think that demand for mining hardware will see a resurgence in the foreseeable future? Share your thoughts in the comments section below!


Images courtesy of Shutterstock


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The post Mining Hardware Supply Chain Seeks Alternative Revenue Streams Amid Declining Demand appeared first on Bitcoin News.

Bitcoin News

Nvidia Reports $289 Million Revenue from the Crypto Sector in Q1

May 12, 2018 |

Nvidia Reports $  289 Million Revenue from the Crypto Sector in Q1

Graphics card manufacturer Nvidia has announced its revenues for the first quarter, mentioning separately the amount generated from sales to the crypto market. The total includes $ 289 million related to GPUs for cryptocurrency mining, according to a corporate report. Demand from crypto miners was stronger than expected, the company noted.  

Also read: New Player Asrock Said to Enter the GPU Mining Market

Crypto Miners Bought a Lot of GPUs, Nvidia CEO

Reporting its financial results from a strong first quarter, Nvidia Corp. has revealed, in a separate box, the amount it generated from sales to the crypto sector – $ 289 million. According to the company’s CFO Commentary on Q1 Fiscal Results, the total revenue increased 66 percent year-over-year, and 10 percent sequentially, to a record $ 3.21 billion. All platforms – Gaming, Professional Visualization, Datacenter, and Automotive – have produced growth, the company said.

Nvidia Reports $  289 Million Revenue from the Crypto Sector in Q1“GPU business revenue was $ 2.77 billion, up 77 percent from a year earlier and up 12 percent sequentially, led by Gaming and Datacenter,” the leading video card manufacturer announced. Gaming revenue was up 68 percent from a year ago and down 1 percent sequentially. Datacenter revenue exceeded $ 700 million, up 71 percent from a year ago and up 16 percent sequentially, Nvidia detailed.

“OEM [original equipment manufacturer] sales included $ 289 million related to GPUs for cryptocurrency mining,” the company pointed out, revealing reportedly for the first time the revenues from its sales to the crypto market.

Demand from cryptocurrency miners in the first quarter was stronger than expected, Nvidia admitted Thursday on its earnings conference call, according to Bloomberg. Nvidia CEO Jensen Huang said:

Crypto miners bought a lot of our GPUs in the quarter and it drove prices up. I think that a lot of gamers weren’t able to buy into the new Geforce as a result.

However, the company expects sales in the sector to fall by about two-thirds in the current quarter.

GPU Manufacturers Benefit from the “New Form of Computing”

Earlier this year Jensen Huang predicted that despite regulatory pressures, the popularity of cryptocurrencies will grow in the next few years. The chief executive of Nvidia said that cryptocurrency, or the “ability for the world to have a very low-friction, low-cost way of exchanging value, is going to be here for a long time”.

In March, Huang told CNBC that cryptos and blockchain, “a fundamental new form of computing,” will be important drivers for the GPU market. He was also quoted as saying that Nvidia needs to increase its GPU production, admitting that the surging demand may be coming from the decentralized nature of cryptos. “There are supercomputers in the hands of almost everybody. No singular force or entity can control the currency,” he added.

Nvidia Reports $  289 Million Revenue from the Crypto Sector in Q1

Advanced Micro Devices, Nvidia’s main competitor, has also benefited from increased sales to crypto miners. According to a report by the analytical firm Jon Peddie Research, demand from the sector helped AMD reduce the gap between its results and those of Nvidia. In the last quarter of 2017, AMD’s share of the GPU market rose from 27.2% to 33.7%. The authors noted that its products remain cheaper, while offering practically the same productivity, when it comes to crypto mining.

In April, Advanced Micro Devices announced that its revenue for the first quarter amounted to $ 1.65 billion, with net income reaching $ 81 million. Again, the positive results were helped by continued demand for cryptocurrency mining hardware. “The first quarter was an outstanding start to 2018 with 40 percent year-over-year revenue growth,” said AMD president and CEO Dr. Lisa Su.

What are your expectations for the market of crypto mining hardware this year? Tell us in the comments section below.


Images courtesy of Shutterstock.


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The post Nvidia Reports $ 289 Million Revenue from the Crypto Sector in Q1 appeared first on Bitcoin News.

Bitcoin News

SeaWorld attendance and revenue leap

May 8, 2018 |

SeaWorld attendance and revenue jumped last quarter, a sharp reversal of the prolonged slide that has dogged the company in recent years.

More than 3.2 million people visited SeaWorld parks during the first three months of the year, up nearly 15% from the same quarter last year, SeaWorld Entertainment…


L.A. Times – Business

Cryptocurrency Mining Accounted for 10% of AMD’s Overall Revenue in Q1 2018

April 27, 2018 |

Cryptocurrency Mining Accounted for 10% of Amd’s Overall Revenue in Q1 2018

The cryptocurrency mining industry is spread all over the world and includes everyone from small miners with a few GPUs at home to vast datacenters with both ASICs and racks of endless GPUs. As such, one of the best ways to get an overall view of the market is via the chip suppliers. And the latest report by AMD shows the demand for mining capacity remained strong in early 2018, despite a slump from the price highs of 2017.

Also Read: $ 350 Million Bitstamp Acquisition Negotiations Denied by Nexon CEO

10% of $ 1.65 Billion Revenue

Cryptocurrency Mining Accounted for 10% of Amd’s Overall Revenue in Q1 2018Advanced Micro Devices, Inc. (NASDAQ:AMD) has announced on Wednesday its revenue for the first quarter of 2018 at $ 1.65 billion, operating income of $ 120 million, net income of $ 81 million, and diluted earnings per share of $ 0.08. This represents very strong performance by the chip company, which is helped by continued demand for cryptocurrency mining. “The first quarter was an outstanding start to 2018 with 40 percent year-over-year revenue growth,” said Dr. Lisa Su, AMD president and CEO.

In the earnings call with analysts following the latest report, AMD shared more about the impact of mining on its bottom line. The company’s Chief Financial Officer Devinder Kumar said: “The strength in Radeon products was driven by both gaming and blockchain demand. We believe blockchain was approximately 10% of AMD revenue in Q1 2018.”

PoS Not a Concern

Cryptocurrency Mining Accounted for 10% of Amd’s Overall Revenue in Q1 2018With such a significant impact on AMD’s revenue, analysts naturally focused on the company’s position on crypto mining. Answering a question by Timothy Arcuri of UBS Securities, the CEO explained how a drop in demand for mining GPUs for one cryptocurrency will not hurt the company. She said: “I think, most people are comparing sort of this blockchain time period to the last one which was a couple of years ago and I think there are a couple of important differences. I think the first one is that there are multiple currencies and multiple applications that are being used. And what we’ve seen is that people who are mining do go from one currency to another depending on what’s happening.”

In a response to John Pitzer of Credit Suisse, who asked about the risk of the market moving from proof of work to proof of stake which might negate the need for mining, the CEO explained how the company keeps its finger on the pulse. She said: “From our standpoint, we stay very, very close to the customer set in the graphics space…We also work directly with the commercial miners, and so, we see kind of what their forecasts are and they work with us and so that we have good visibility on. There is a piece that go through retail that is hard to tell whether that’s gaming or mining, but we believe we have a good sense of what that is.”

“And then, to your longer-term question, I do think the blockchain infrastructure is here to stay. I think there are numerous currencies. There are numerous applications that are using the blockchain technology. We don’t see a significant risk of secondhand GPUs coming into the market. I think what you find is that, one, there are number of different currencies, and, two, a lot of these users that are buying GPUs these days are actually buying them for multiple use cases, both commercial and consumer. So they’re not necessarily buying just for mining,” she opined.

Do you think all cryptocurrencies should switch to PoS eventually? Share your thoughts in the comments section below.


Images courtesy of Shutterstock.


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The post Cryptocurrency Mining Accounted for 10% of AMD’s Overall Revenue in Q1 2018 appeared first on Bitcoin News.

Bitcoin News

Southwest Airlines forecasts drop in revenue as bookings decline after first fatal accident

April 27, 2018 |

The first fatal accident in the history of Southwest Airlines has pushed bookings down as the nation’s most popular domestic carrier tries to repair damage to its reputation and expedite inspections of virtually its entire fleet of planes.

While reporting earnings Thursday, the Dallas-based airline…


L.A. Times – Business

Facebook Posts Surge in Revenue as It Tackles User-Data Crisis

April 26, 2018 |

Facebook, in its first earnings report after touching off widespread data-privacy concerns, posted soaring revenue and profit that highlighted the company’s central place in the digital economy.
WSJ.com: US Business

Bithumb’s Revenue Last Year Jumps 171-Fold Compared to 2016

April 11, 2018 |

Bithumb's Revenue Last Year Jumps 171-Fold Compared to 2016

According to local reports, the South Korean exchange Bithumb has released the firm’s 2017 revenue and the exchange made 171 times more than the previous year.

Also read: Japan Revises Registration Rules for Cryptocurrency Exchanges

Bithumb’s revenue has increased 171-fold

One of South Korea’s largest digital asset trading platforms has seen an increase in revenue that not many firms in the country doing business have ever surpassed. The columnist Yoon Hyung Joong details that Bithumb’s revenue has increased 171-fold compared to the previous year. The company’s earnings report was released due to the fact Bithumb is a subsidiary of a publicly traded company called BTCKorea.

Bithumb's Revenue Last Year Jumps 171-Fold Compared to 2016

BTCKorea’s audit report published on March 20 on South Korea’s Financial Supervisory Service website shows that the firm’s sales added up to ₩333.4Bn KRW ($ 312Mn USD) and a net income of ₩427Bn KRW ($ 400Mn USD) in 2017. It’s unusual for a traditional Korean company to have a net income that is higher but may indicate the company held its cryptocurrency income rather than selling it for won. Bithumb’s standard charge for all trading fees is 0.15 percent which could accumulate a lot of revenue.

Non-Operating Income

The company details the extra $ 90 million USD worth of revenue stemmed from “non-operating income.” A Bithumb representative explained to the reporter Yoon Hyung Joong that a more detailed explanation of the firm’s balance sheet would be published soon.

“It is difficult to give a concrete explanation as a financial statement before it is finalized at the shareholders’ meeting held on March 30,” Bithumb detailed at the time. “We will give a detailed explanation after publishing the financial statements in mid-April.”

Bithumb's Revenue Last Year Jumps 171-Fold Compared to 2016
Some of BTCKorea/Bithumb’s earnings.

Exchanges like Bithumb saw some extreme cryptocurrency volumes in Korean won throughout 2017. Moreover, a few times last year the won took the second position in global trade volumes. The won still remains a top-five competitor among fiat currencies worldwide and the cryptocurrency exchange Bithumb has traded $ 178,122,945 USD worth of cryptocurrencies in the last 24 hours. The top five cryptocurrencies traded with the won on Bithumb today is BTC, EOS, XRP, ETH, and ICX.

What do you think about the South Korean exchange Bithumb revenue increasing 171x? Let us know what you think about this subject in the comments below.


Images via Pixabay, and Bithumb.


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The post Bithumb’s Revenue Last Year Jumps 171-Fold Compared to 2016 appeared first on Bitcoin News.

Bitcoin News

Vice Just Had a Big Revenue Miss and Investors Are Getting Antsy

February 7, 2018 |

Vice Media is facing uncertainty in its executive ranks at a pivotal moment, as the digital media company tries to rebound from a substantial revenue miss last year and fend off shareholders pressing for an exit.
WSJ.com: US Business

Snap Shares Pop as Revenue Rises

February 7, 2018 |

Snap’s stock surged more than 25% after the company reignited revenue and user growth for the first time as a publicly traded firm, a promising sign that may reflect progress in persuading advertisers its Snapchat app is a viable alternative to Facebook and Google.
WSJ.com: US Business