Despite China's Mining Ban, Bitcoin Miners' Revenue 206% In 2021: Report

Bitcoin mining revenue rose 206% in 2021 despite many countries cracking down on crypto mining and China even banning it, showed a report by The Block Research and GSR.

Bitcoin miners have generated a total of $15.3 billion in revenue, making 2021 a record year, according to The Block Research's 2022 Digital Asset Outlook Report published last month.

It noted mining revenue spiked the most in March, when miners brought in some $1.75 billion, including $167 million in transaction fees.

"This spike in Bitcoin mining also contributed to the skyrocketing price of Bitcoin in 2021," it said.

After China banned mining in May last year, there has been a steady rise in mining in other countries.

"Historically, due to the cheap energy, low overhead cost and the proximity to major manufacturers, Bitcoin mining had been an activity dominated by investors in China," reads the report.

After the ban, Bitcoin mining found various other countries as new hot spots, including the United States and Kazakhstan. The U.S. officially became the world's largest hub for Bitcoin mining operations and business, as per the report's findings.

The scenario was no different for Ethereum miners as they generated a total of $16.5 billion in revenue, representing a year-on-year increase of 678%, a record revenue year, as per the report.

"The increase can be attributed to significantly higher revenues generated from transaction fees, which increased in response to outsized NFT activity in the second to the third quarter," it read.

Bitcoin was trading at $43,857 as of 2.01 a.m. ET Thursday, while Ethereum was trading at $3099.