Bitcoin Mining Profitability Trends in June
The month of June witnessed a notable surge in Bitcoin mining profitability compared to the preceding month, according to the latest report by Jefferies. A 2% upturn in Bitcoin's value and a 5% decline in the network hashrate played pivotal roles in enhancing the overall profitability, a response to the recent halving event. Analyst Jonathan Petersen highlighted that June marked a gradual rebound from the halving's immediate impact, which had significantly slowed the growth of Bitcoin supply. The adjustments made post-halving were crucial in restoring market dynamics, as reported by Coindesk.
Jefferies also recalibrated the price targets for various Bitcoin mining entities. Marathon Digital saw its target price revised downwards to $22 from $24, while Argo Blockchain's ADRs target was trimmed to $1.20 from $1.50. The valuation of Argo's traded shares in the UK dipped from 11.9p to 9.5p. Despite these modifications, Jefferies upheld a hold rating for these companies.
June saw U.S.-listed mining companies collectively increasing their contribution to new Bitcoin creation, with their share rising from 19.1% in May to 20.8% in June. Marathon Digital mined 590 Bitcoin in June, although this was 4% lower than the previous month's total. CleanSpark's mining output surged to 445 Bitcoin, reflecting a 7% growth. Marathon Digital retained its position with the highest installed hashrate among U.S. miners at 31.5 exahashes per second (EH/s), followed by Riot Platforms at 22 EH/s.
The report shed light on a strategic transition among Bitcoin miners towards high-performance computing (HPC) and artificial intelligence (AI) hosting. This strategic move intends to diversify revenue streams and capitalize on the escalating demand for AI and cloud computing infrastructure, spurred by the diminishing profitability of Bitcoin mining post-halving.
