Bitcoin Mining Profitability Increased in June Due to Market Adjustment Post-Halving

Bitcoin mining proved to be more lucrative in June compared to May, according to a recent report. Jefferies, an investment bank, revised its price target for Marathon Digital to $22 from $24. Additionally, the bank adjusted its price targets for Argo Blockchain ADRs to $1.20 from $1.50 and for the U.K.-traded stock to 9.5p from 11.9p.

The report highlighted a shift in focus among bitcoin miners towards high-performance computing (HPC) and artificial intelligence (AI) hosting to diversify revenue streams and leverage the growing demand for AI and cloud computing infrastructure. This strategic move comes in response to the diminishing profitability of bitcoin mining post the recent halving events, as noted by analyst Jonathan Petersen.

In June, U.S.-listed mining companies contributed a higher proportion of new bitcoin compared to May, accounting for 20.8% of the total network, up from 19.1% the previous month. This increase was attributed to the expansion of their capacity alongside a decline in the network hashrate.

Marathon emerged as the top bitcoin miner in June, producing 590 tokens, albeit a 4% decrease from May. CleanSpark mined 445 tokens, marking a 7% increase. Marathon maintained the largest installed hashrate among U.S.-listed miners at 31.5 exahashes per second (EH/s), with Riot Platforms following closely at 22 EH/s.

The report also pointed out that the month of June witnessed a modest recovery from the immediate impacts of the halving that were most pronounced in May. The halving event, which took place in April, slowed down the rate of bitcoin supply growth by cutting miners’ rewards in half.

Hashrate, which signifies the collective computational power utilized for mining and processing transactions on a proof-of-work blockchain, serves as an indicator of industry competition and mining difficulty. The report emphasized the significance of this metric in gauging industry dynamics and the impact of halving events on mining operations.

As the market continues to adapt to the evolving landscape of cryptocurrency mining, it remains essential for industry players to stay agile and explore alternative revenue streams to navigate the changing profitability dynamics in the sector.