Bitcoin Miner revenue surpasses Ethereum for the first time in a year: Report

For the first time in almost a year, revenues for Bitcoin (BTC) miners exceeded Ethereum’s (ETH) revenues in June. But even then, both digital assets have shown declining profit margins due to the prevailing cryptocurrency winter.

According to a July 5 report by Binance, last month, Bitcoin miners generated $ 656.47 million.

Meanwhile, Ethereum miners raised $ 548.58 million in the same period, more than $ 100 million less than their BTC counterparts. This turnaround was significant because, except that it did not happen in about a year, Ethereum miners were ahead of Bitcoin miners by about $ 100 million a month earlier. Even more, this margin was even larger in the months before May.

Bitcoin miners provide more than Ethereum

Based on the report, there has been a “closing gap” between the two crypto-mining revenues in the last couple of months. Ethereum, once a leader in profitability, has barely maintained its position as BTC miners’ revenues approached levels. Then came June, where, in the midst of all the uncertainty and pressure in the crypto market, Bitcoin mining became more rewarding than Ether.

But even then, miners of both digital assets have been between rock and hard in recent times. Their dividends are directly proportional to the prices of the cryptocurrencies they extract. This means that their revenues have been significantly reduced in the face of the current market downturn.

To put this into context, mining a single Bitcoin block gives the miner 6.25 BTC. During Bitcoin’s all-time high in November of $ 69K, this equated to $ 431,250.

The figure is now down 60% to just $ 120,000 now that BTC is trading around $ 20K. Miners’ incomes are now at a low level of two years since Bitcoin was last traded at this price in December 2020. Ethereum miners have suffered a similar fate when ETH fell to around $ 1,100. Binance notes:

“Due to the decline in the price across the market, the return from the mining business, although the same in terms of currency volume, has fallen significantly in dollar terms.”

Miners Hectic

Due to the decline in revenues, miners have been forced to either sell their machines and productions or seek alternative sources of income. Several have sought solace in traditional finance, namely the debt and stock markets.

On top of these problems, miners in Washington have higher electricity bills, while those in Kazakhstan are taxed. Those in New York are now forced to resort to “going green or going home.”