Bitcoin Mining Profitability Drops in July as Market Conditions Shift

Bitcoin mining saw reduced profitability in July compared to June, as reported by Jefferies.

Despite a stable hashrate, the value of Bitcoin fell by over 6%, impacting miners’ earnings.

US-based mining firms, however, increased their production share. They were responsible for 21.1% of Bitcoin mined in July, up from 20.7% in June. This growth is attributed to these companies rapidly expanding their mining capacities, which outpaced the rise in network hashrate.

Jefferies adjusted its price forecast for Marathon Digital (MARA) down to $17 from $22, maintaining a hold rating. Following this, Marathon’s stock fell by 0.7% to around $15 in premarket trading.

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Looking forward, August may pose additional difficulties for miners. Bitcoin’s price has dropped 5% this month, and with a rising network hashrate, miners might face intensified competition and lower profits.

Marathon Digital led production in July with 692 Bitcoins, a 17% increase from the previous month, and maintains the largest hashrate in the industry. Meanwhile, JPMorgan’s report noted a record-high share of global hashrate among US-listed miners, highlighting their growing role in the sector.

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Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.