Bitcoin Mining Profitability in June

Bitcoin mining experienced a notable increase in profitability during June compared to the previous month, attributed to a 2% rise in the cryptocurrency's value and a 5% decline in network hashrate. A recent report from Jefferies investment bank emphasized the crucial role of market dynamics post the halving event in driving this recovery.

According to analyst Jonathan Petersen, June marked a modest recovery from the initial impacts of the halving that occurred in May. The halving, a significant event that occurred in April, led to a 50% reduction in miners' rewards.

Decrease in Mining Competition

Hashrate, which measures the total processing power needed for mining and processing transactions on a proof-of-work blockchain, serves as an indicator of competitiveness and mining complexity. The decrease in hashrate in June indicated a temporary decline in competitiveness among miners, resulting in a slight ease in Bitcoin mining operations and improved profitability.

The report also highlighted a strategic shift by Bitcoin miners towards high-performance computing (HPC) and artificial intelligence (AI) hosting. Miners are diversifying their revenue streams by capitalizing on the increasing demand for AI and cloud computing infrastructure, thereby enhancing the sustainability of their activities in the fiercely competitive bitcoin mining sector.

However, a recent observation by CryptoQuant revealed that Bitcoin miners are actively offloading their holdings, approaching levels observed during the bear market in late 2022.

Rise in Bitcoin Mining Activities

In terms of production, publicly listed mining companies in the United States significantly increased the new Bitcoin supply in June, representing 20.8% of the total network compared to 19.1% in May. Marathon Digital emerged at the forefront by mining 590 Bitcoins in June, despite a 4% decline from the previous month. CleanSpark (CLSK) also showcased growth by mining 445 Bitcoins, reflecting a 7% increase from May.

Marathon Digital maintains the highest installed hashrate among US-listed miners at 31.5 exahashes per second (EH/S), followed by Riot Platforms (RIOT) with a hashrate of 22 EH/s.

Revised Price Targets

Jefferies revised its price targets for several bitcoin mining firms, lowering Marathon Digital's (MARA) price estimate from $24 to $22 and reducing the price targets for Argo Blockchain ADRs (ARBK) and its U.K. traded shares. Despite these adjustments, Jefferies maintained its hold rating for the businesses.

Bitcoin is currently trading around $57,300, marking a decline of over 17% in the past 30 days from its all-time high of $73,750 in March. The article 'Halving Effects Subdue: Bitcoin Mining Profitability Rebounds in June' highlights the resurgence in Bitcoin mining profitability post the halving event.