Bitcoin Mining Profitability Last Month Hit Highest Level Since the Halving: JPMorgan

Bitcoin mining profitability surged in July, reaching its highest point since the last halving event in April 2024, according to a recent JPMorgan research report. Miners averaged a substantial $57,400 per exahash per second (EH/s) in daily block reward revenue, a 4% increase from June’s figures. This significant rise signifies a positive trend in the industry’s financial health.

However, it’s crucial to note that despite this improvement, profitability remains below pre-halving levels. Daily revenue and gross profit per EH/s are still considerably lower—43% and 50%, respectively—than before the halving reduced the block reward from 6.25 BTC to 3.125 BTC. This underscores the ongoing impact of the halving on miners’ earnings.

The report also sheds light on the network hashrate, a key indicator of mining competition and difficulty. July saw a 4% increase in the monthly average network hashrate, reaching 899 EH/s. This upward trend follows a June decline attributed to higher temperatures impacting mining operations. The increase in hashrate reflects the growing computational power dedicated to Bitcoin mining.

Mining difficulty also experienced a notable rise, climbing 9% by the end of July and standing 48% higher than before the halving. This escalating difficulty underscores the intensified competition within the Bitcoin mining landscape.

JPMorgan’s analysis further examined the performance of publicly traded miners. Ten out of the thirteen U.S.-listed miners tracked by the bank outperformed Bitcoin itself in July. Argo Blockchain led the pack with a remarkable 66% gain, highlighting the varying success rates within the industry. Conversely, Core Scientific underperformed, experiencing a 21% decline, illustrating the inherent risks and volatility in this sector.

In summary, while July represented a significant rebound in profitability for Bitcoin miners, the figures remain below pre-halving levels. The increasing network hashrate and mining difficulty underscore the ongoing competitiveness and challenges faced by miners in the evolving Bitcoin ecosystem. The diverse performance of publicly traded mining companies further highlights the sector’s inherent volatility.