A new report by Jefferies indicates that the profitability of Bitcoin mining decreased in July compared to June. Key factors contributing to this decline include a drop in Bitcoin's price and a stable network hashrate.
Profitability Decline
According to the Jefferies report, Bitcoin mining profitability was lower in July compared to June. The main reasons for this decline are a 6% drop in Bitcoin's price and a stable network hashrate.
Marathon Digital's Situation
Jefferies downgraded its price target for Marathon Digital, one of the leading Bitcoin mining companies, from $22 to $17, maintaining a hold rating. Despite market challenges, Marathon Digital managed to increase its Bitcoin production by 17% in July, producing 692 coins and solidifying its position as the leader in installed hashrate.
Outlook for August
The report also highlighted that August could pose even more difficulties for miners, as Bitcoin's price has dropped another 5% and the network hashrate has begun to rise again. This increase in competition among miners is likely to further squeeze profitability. JPMorgan also observed that U.S.-listed miners reached a record share of the global hashrate in July, emphasizing the growing dominance of these companies despite the challenging economic environment.
The decrease in Bitcoin mining profitability in July and the increase in competition among miners create challenging conditions for the market. With Bitcoin's price continuing to fall and hashrate rising, miners will need to adapt to new challenges in the coming months.
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