Bitcoin Miners’ Profits Dipped In July Compared To June: Jeffries
By Benzinga
In July, Bitcoin (CRYPTO: BTC) mining saw a slight decline in profitability compared to June, according to a research report released by investment bank Jefferies on Thursday.
What Happened: Bitcoin’s price dropped over 6%, while the network hashrate, a key indicator of competition within the mining industry, remained steady,
Jefferies subsequently lowered its price target for Marathon Digital (NASDAQ:MARA) from $22 to $17, maintaining a hold rating on the stock, Coindesk reported.
Following the announcement, Marathon Digital’s shares dipped by 0.7%, trading around $15 in pre-market activity.
The report highlighted that U.S.-listed mining companies produced a larger portion of Bitcoin in July compared to June, increasing their share of the total network from 20.7% to 21.1%.
However, the report also cautioned that August could prove more challenging for miners, given Bitcoin’s additional 5% price decline and the recent growth in network hashrate.
Analysts Jonathan Petersen and Joe Dickstein noted that the market share of these public mining companies expanded because they added new capacity more rapidly than the overall network hashrate increased.
Notably, Marathon Digital led the sector by producing 692 bitcoin in July, marking a 17% increase from the previous month, and continued to hold the largest installed hashrate in the industry.
Last month, JPMorgan also reported that U.S.-listed miners reached a record share of the global hashrate in July. This development underscores the growing influence of U.S.-based mining operations in the global Bitcoin ecosystem.
What’s Next: For those looking to explore the future of digital assets and the evolving landscape of cryptocurrency mining, the Benzinga’s Future of Digital Assets event on Nov. 19 promises to offer valuable insights and discussions from industry leaders.
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