In July, Bitcoin mining became less profitable compared to June, which is attributed to a steady network hashrate and a more than 6% drop in Bitcoin's price, according to a report by investment bank Jefferies.
Jefferies Report Overview
The report indicates that US-listed mining companies managed to increase their share of Bitcoin production in July compared to the previous month, reaching 21.1%, up by 0.4%. This growth is attributed to the rapid deployment of new mining capacity, outpacing the growth in network hashrate.
Bitcoin Production in July
Marathon Digital emerged as the top Bitcoin producer in July, mining a total of 692 coins, a 17% increase from the previous month. It also has the largest installed hashrate in the industry. The report mentions that companies like Marathon Digital continue to expand their mining capacities.
August Prospects for Miners
According to the report, August might be an even more challenging month for miners. Bitcoin's price continues to decline, having fallen by around 5%, while the network hashrate has started to increase, potentially leading to tighter competition and reduced profitability. A separate JPMorgan report noted that the share of US-listed miners in the global hashrate reached record highs, reflecting their growing presence in the Bitcoin mining sector.
Thus, despite significant efforts by US mining companies to expand their capacities, market conditions remain volatile, which may impact future profitability in the coming months.
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