Mining Profitability Climbed Over 5% in June as Hashrate Fell, BTC Price Rose: Jefferies
Bitcoin mining profitability saw a 5.3% increase in June, driven by a combination of factors. A modest 1.2% rise in Bitcoin’s price, coupled with a 6.7% decrease in the network hashrate, contributed to this positive shift. The hashrate, representing the total computational power used for Bitcoin mining and a key indicator of mining difficulty and competition, experienced this decline partly due to soaring energy costs in the US during the summer heatwave. Less efficient mining operations were forced to curtail activities, leading to a decrease in competition and ultimately higher profitability for remaining miners.
July started with Bitcoin exceeding $123,000, setting a new all-time high. This surge was attributed to positive regulatory developments in the crypto space and a weakening US dollar, further fueled by President Trump’s comments on tariffs. This improved macro and regulatory environment significantly boosted investor interest and provided a strong tailwind for Bitcoin mining companies.
Despite the enhanced profitability, North American publicly listed miners witnessed a decrease in Bitcoin production. June’s output reached 3,382 BTC, a decline from May’s 3,754 BTC. Their share of the global mining network also dropped slightly, from 26.3% in May to 25.1% in June. Marathon Digital Holdings (MARA) led in Bitcoin production with 713 BTC, followed by CleanSpark with 685 BTC. MARA also maintained its dominance in energized hashrate, recording 57.4 EH/s at the end of June, though slightly down from May’s 58.3 EH/s. CleanSpark held the second position with 45.3 EH/s.
The improved economics of Bitcoin mining are evident in the increased daily revenue. A hypothetical mining operation with 1 EH/s capacity generated approximately $57,000 in daily revenue during June, a notable increase from May’s $54,000. This underscores the positive impact of the decreased hashrate and increased Bitcoin price on mining profitability. The interplay of these economic factors significantly shaped the Bitcoin mining landscape in June, highlighting the dynamic nature of this industry.
