Bitcoin (BTC) mining was less profitable in July compared to June, according to a research report published by investment bank Jefferies. The drop in profitability came as the network hashrate remained relatively stable while the Bitcoin price dropped by over 6%.
Bitcoin Mining Was Less Profitable in July, Jefferies Reports
The report highlighted that US-listed mining companies managed to produce a larger share of Bitcoin in July compared to the previous month.
These companies accounted for 21.1% of total network Bitcoin production in July, up from 20.7% in June. This increase in market share was attributed to public companies rapidly deploying new mining capacity, outpacing growth in network hashrate.
Jefferies lowered its price target on Marathon Digital (MARA) from $22 to $17 but maintained a hold rating on the stock. Following the downgrade, Marathon's shares fell 0.7% to around $15 in premarket trading.
The report also noted that August could pose more challenges for miners. Bitcoin price has dropped by around 5% this month and the network hashrate has started to increase, potentially leading to tighter competition and reduced profitability.
Marathon Digital emerged as the top Bitcoin producer in July, mining a total of 692 coins, a 17% increase from the previous month. The company also has the largest installed hashrate in the industry.
In a separate report, JPMorgan noted that the share of US-listed miners in the global hashrate reached a record high in July, reflecting these firms' growing presence in the Bitcoin mining sector.
*This is not investment advice.
