Bitcoin Miners' Profits Reach Highest Monthly Since Halving: JP Morgan
In a note published on Friday, JP Morgan analysts noted that Bitcoin miner revenues in July reached their highest monthly level since the last halving in April 2024.
Analysts Reginald L. Smith and Charles Pierce indicated that miners were able to earn an average of $57,400 per EH/s in daily block rewards.
“July was another strong month for Bitcoin miners,” the report says. “Mining profitability reached its highest level since the last halving (April 24), and ten of the thirteen miners we tracked outperformed the BTC price gain for the month (+8%).”
Bitcoin hit a record high of $122,838 in July, capping more than two months of significant gains, according to cryptocurrency market data provider CoinGecko, and even after the decline, the price remained within 8% of that high.
However, miners also faced ongoing challenges, with increasing operational costs and mining difficulty, as well as decreasing rewards for verifying transactions on the blockchain. The report highlighted that “daily revenue and gross profit on EH/S are 43% and 50% below pre-halving levels, respectively.”
Mining difficulty has increased by 9% in a month.
According to UK-based asset management firm Farside Investors, which did not yet have data for July, the number of tokens added by the 11 largest miners has generally fallen in the first four or six months of the year.
During the last halving, which occurs every four years, the reward decreased from 6.25 BTC to 3.125 BTC.
Mining operations, which require significant electricity consumption, are facing rising costs amid falling Bitcoin prices as they become more expensive to maintain.
The Bitcoin mining industry is largely made up of industrial facilities, which are typically warehouses filled with computers that process transactions on the network. The massive amounts of energy required for these computer networks are difficult to obtain at low prices.
Shares of MARA Holdings, the world’s largest mining company, fell 3.6% on Friday. Earlier this week, the company reported second-quarter revenue of $238 million, up 64% year over year. Net income jumped 505% to a record $808 million, thanks in part to a $1.2 billion increase in the fair value of MARA’s bitcoin holdings.
Source: cryptonews.net
