Bitcoin Miner Profits Reach Highest Level in Recent History – What Does It Mean?
In July, Bitcoin mining revenue reached its highest monthly figure since the last halving in 2024. JP Morgan analysts examined this interesting data in their report.
According to the study, miners received an average of $57,400 per EH/s (exahash/second) in daily block rewards.
“July was another strong month for Bitcoin miners. Mining profitability reached its highest level since the last halving (April 2024), and ten of the thirteen miners we monitored outperformed the BTC price increase by 8%,” analysts Reginald L. Smith and Charles Pierce wrote.
Bitcoin hit a record high of $122,838 in July, ending a relatively steady rally that lasted more than two months. While the price has fallen from its peak, it remains within 8% of it, according to CoinGecko.
However, miners are also facing increased operational costs and reduced rewards for validating transactions on the blockchain. “Daily revenue and gross profit are 43% and 50% below pre-halving levels, respectively,” the report says. Mining difficulty increased by 9% in July.
According to UK-based investment firm Farside Investors, the volume of coins mined by the 11 largest miners has been declining for four months in a row during the first six months of the year. However, Farside has not yet released data for July. During the last halving, the reward fell from 6.25 BTC to 3.125 BTC.
Bitcoin mining requires a significant amount of electricity, making it more expensive as the price of Bitcoin falls. The Bitcoin mining industry typically consists of vast warehouses filled with computers that process transactions on the network. The high energy consumption of these computer systems makes it difficult to make them available at affordable prices.
*This is not investment advice.
Source: cryptonews.net
