Mining Profitability Up Over 5% in June as Hash Rate Falls, BTC Price Rise: Jefferies
Bitcoin
According to investment bank Jefferies, BTC mining profitability of $118,588.21 increased by 5.3% in June, which is due to a 1.2% increase in the cryptocurrency’s value and a 6.7% decrease in the network hashrate.
Hashrate is the total computing power used to mine and process transactions on a Proof-of-Work blockchain, and is an indicator of industry competition and mining difficulty. It is measured in exahashes per second (EH/s).
The increase in profitability came as a severe summer heat wave in the US pushed up energy prices, forcing less efficient producers to cut their output.
Since the beginning of July, Bitcoin has surpassed $123,000, setting a new all-time high, thanks to more favorable cryptocurrency regulations and a weakening U.S. dollar following President Donald Trump's announcement of tariffs. The macroeconomic and regulatory environment has increased investor interest and created a positive environment for mining companies, the report said.
Analysts Jonathan Petersen and Yan Aigul note that despite the growth in profitability, public miners in North America have faced a monthly decrease in bitcoin production.
In June, they mined a total of 3,382 BTC, down from 3,754 in May. The report highlighted that their share was 25.1% of the global network, down from 26.3% the previous month.
The leader in terms of mining volume was MARA (MARA) with 713 BTC, followed by CleanSpark with 685 mined tokens.
MARA also retained its hashrate lead, reaching 57.4 EH/s at the end of June, down slightly from 58.3 EH/s in May. CLSK is second in hashrate, with 45.3 EH/s, according to the bank.
The economics of Bitcoin mining improved last month. A hypothetical mining facility with a capacity of 1 EH/sec could generate approximately $57,000 in daily revenue in June, up from $54,000 in May, the report said.
Read more: Bitcoin network hashrate drops in June as miners react to recent heat wave: JPMorgan
Source: cryptonews.net
