Nvidia is moving closer to a full trial after a US court allowed investors to pursue claims that the company failed to clearly disclose over $1 billion in crypto mining related revenue.
Key Takeaways
- A US court approved a class action lawsuit against Nvidia over crypto related revenue disclosures.
- Investors claim more than $1 billion in mining revenue was not clearly reported.
- The lawsuit focuses on the 2017 to 2018 period, when crypto demand surged.
- Nvidia stock dropped 28.5% in two days after crypto demand slowed in 2018.
What Happened?
A federal court in the United States has allowed investors to move forward as a group in a class action lawsuit against Nvidia and its CEO Jensen Huang. The case centers on whether the company misrepresented how much of its revenue came from cryptocurrency mining.
The decision does not determine guilt but confirms that the claims are strong enough to proceed toward trial, with the next hearing scheduled for April 21, 2026.
🚨NVIDIA FACES LAWSUIT OVER CRYPTO GPU SALES DISCLOSURES
— Coin Bureau (@coinbureau) March 26, 2026
Nvidia now faces a certified class action lawsuit over claims it hid more than $1 BILLION in crypto-related GPU revenue.
The ruling allows investors to pursue claims collectively as the case moves toward trial. pic.twitter.com/J5QC5ef1aV
Allegations Around Hidden Crypto Revenue
At the core of the lawsuit is the claim that Nvidia generated significant income from crypto miners but did not clearly disclose it to investors.
Court filings suggest the company made around $1.7 billion from crypto related GPU sales, with roughly $1.13 billion allegedly not clearly reported. Investors argue that much of this revenue was recorded under the gaming division, creating a misleading picture of steady demand from gamers.
Key claims from investors include:
- Over 65% of crypto demand came through GeForce gaming GPUs.
- Crypto activity may have driven up to 83% of GPU growth during the period.
- Revenue classification masked the company’s exposure to crypto market volatility.
Nvidia, however, maintains that crypto related sales were a limited part of its business and were tracked separately from its core operations.
Internal Communications Raise Questions
The court pointed to internal emails and correspondence as part of the evidence. One message from senior management suggested that Nvidia’s strong stock price was linked to earlier statements about its business performance.
The judge noted that such evidence does not rule out the possibility that Nvidia’s disclosures influenced investor decisions and stock valuation. This finding played a key role in allowing the case to proceed.
2018 Crypto Crash and Stock Impact
The risks tied to crypto demand became visible in 2018 when the market slowed sharply.
In August 2018, Nvidia lowered its outlook, citing weakening demand from crypto miners. By November 15, 2018, the company acknowledged that gaming revenue had missed expectations due to excess inventory linked to the crypto downturn.
Following this disclosure:
- Nvidia shares fell about 28.5% in just two trading sessions.
- Investors argued the drop reflected delayed transparency about crypto exposure.
This sharp decline is now a central part of the lawsuit, as plaintiffs claim earlier disclosures could have prevented investor losses.
Regulatory Scrutiny and Case Timeline
This lawsuit is not Nvidia’s first encounter with regulators over the issue. In 2022, the U.S. Securities and Exchange Commission fined the company $5.5 million for failing to properly disclose the impact of crypto mining on its gaming business.
The case itself has had a long journey:
- First filed in 2018.
- Dismissed in 2021.
- Reinstated on appeal.
- Now approved as a class action lawsuit.
The certified class includes investors who bought Nvidia stock between August 10, 2017, and November 15, 2018.
What Comes Next?
With class certification granted, investors can now pursue the case collectively. The upcoming hearing on April 21 will set the next steps as the case moves closer to trial.
While the outcome remains uncertain, the lawsuit highlights growing scrutiny around how companies report revenue tied to emerging sectors like cryptocurrency.
CoinLaw’s Takeaway
In my experience, this case is a strong reminder that transparency matters more than short term growth narratives. I found that during crypto booms, companies often benefit from hidden demand spikes, but when the cycle turns, the truth surfaces quickly.
What stands out to me is how much of Nvidia’s growth may have been tied to crypto without investors fully realizing it. If proven, this is not just about one company but about how markets react when key revenue drivers are not clearly explained.
