Investment bank Jefferies has released a research report highlighting the profitability rates of Bitcoin mining. The report reveals that Bitcoin mining became more profitable in June compared to May. This increase in profitability can be attributed to a 2% rise in Bitcoin price and a 5% decrease in network Hashrate. The market was adjusting to the effects of the recent halving event, and June saw a modest recovery from the immediate impacts of the halving. Network Hashrate, which measures the total computing power used for mining and processing transactions, serves as an indicator of competition and mining difficulty.
The quadrennial reward halving that occurred in April resulted in a 50% reduction in miners’ rewards and slowed down the growth rate of Bitcoin supply. As a result, Jefferies adjusted the price targets for several mining companies. Marathon Digital’s price target was lowered from $24 to $22, while Argo Blockchain ADRs saw a decrease from $1.50 to $1.20 and UK-listed shares dropped from 11.90p to 9.5p. Despite the adjustments, Jefferies maintained its hold rating on the companies.
The research report also highlighted a strategic shift among Bitcoin miners towards incorporating high-performance computing (HPC) and artificial intelligence (AI). This shift aims to diversify revenue streams and take advantage of the growing demand for AI and cloud computing infrastructure. Bitcoin mining profitability has declined, especially after the halving events, making it necessary for miners to explore alternative sources of income. It’s important to note that this article does not provide investment advice.
