In July 2024, Bitcoin mining profits reached their highest level since the last halving. JP Morgan analysts examined data indicating growth in this sector.
Profitability of Bitcoin Mining
According to the report, miners earned an average of $57,400 per EH/s (exahash/second) in daily block rewards. 'July was another strong month for Bitcoin miners. Mining profitability reached its highest level since the last halving (April 2024), and ten of the thirteen miners we track outperformed the BTC price increase by 8%,' analysts Reginald L. Smith and Charles Pearce noted.
Bitcoin Prices and Mining Difficulty
Bitcoin reached a record high of $122,838 in July, capping a relatively steady rally that lasted more than two months. While the price has retreated since its peak, it remains within about 8% of that high, according to CoinGecko data. Meanwhile, mining difficulty increased by 9% in July.
Challenges in the Mining Industry
However, miners are also struggling with rising operational costs and declining transaction validation rewards on the blockchain. 'Daily revenue and gross profit are 43% and 50% below their pre-halving levels, respectively,' the report stated. According to UK-based asset manager Farside Investors, the number of coins produced by the top 11 miners decreased for four consecutive months in the first six months of the year.
Thus, the profitability of Bitcoin mining has increased, despite the industry facing challenges related to rising operational costs and changes in mining difficulty.
