Bitcoin Mining Profitability Dropped in July

• Public Bitcoin miners in the US observed marginal losses in July while mining more BTC.
• They can face greater losses this month because of BTC’s falling price and increased network hashrate.

US-listed Bitcoin (BTC) mining firms generated lesser profits in July than in June despite mining more coins due to BTC’s price falling by about 6%. The blockchain’s hashrate, which dictates the amount of energy miners expend on the network, remained the same and did not help miners either. Nevertheless, the profit difference between July and June was not much, as reported by investment bank Jefferies.

Miners in the US produced 21.1% of the network’s BTC, rising from June’s 20.7%. How this will turn out this month can be assumed, considering BTC’s price woes and the network’s hashrate rising. With July’s slow mining action and August offering worse conditions, Marathon Digital (MARA), the biggest mining firm, saw its stock price drop to about $15, declining by 0.7%. To that end, Jefferies lowered MARA’s price target from $22 to $17.

Earlier this month, its price dipped by 8% when its second-quarter revenues underwhelmed Wall Street’s expectations. Despite the turbulence, the mining firm brought home the most BTC in July—692 million—a 17% increase from June. It also currently holds the highest hashrate in the industry, constantly increasing its resources by acquiring other mining firms and striking deals with energy providers.

US-Listed Bitcoin Miners Dominate the Global Industry

Other miners, too, have increased their capacity to mine more BTC to compensate for the reduced block rewards ever since the Bitcoin Halving. With that, publicly listed miners are observing increasing market shares due to increasing capacity quicker than the Bitcoin network’s hashrate increase.

JP Morgan also reported that US Bitcoin miners are reaching a share of the global hashrate unseen to them prior. Miners from the country are dominating the mining scene, unlike any other country.