Bitcoin Mining Profitability Grew 2% in July, Driven by Rising Bitcoin Prices

A report shows that Bitcoin mining profitability improved in July, driven by increased profitability for the world's largest cryptocurrency.

The bank said U.S.-listed miners account for 26% of the Bitcoin network, compared to 25% in June. Jefferies noted that IREN mined the most Bitcoin in July, followed by MARA.

Bitcoin

Bitcoin $117,542.31 Investment bank Jefferies said in a research note on Friday that mining profitability increased 2% in July, driven by a 7% price increase for the world's largest cryptocurrency and a 5% increase in the network hash rate.

"We believe positive BTC price momentum is most beneficial for Galaxy's (GLXY) digital asset business, while miners need to cope with rising network hash rate," wrote analyst Jonathan Peterson.

Hash rate refers to the total computing power required to mine and process transactions on the Proof-of-Work (PoW) blockchain and is a measure of industry competition and mining difficulty. The unit is exahash per second (EH/s).

The report indicates that US-listed Bitcoin mining companies mined a total of 3,622 Bitcoins in July, compared to 3,379 the previous month. These companies account for 26% of the network's total hash rate, compared to 25% in June.

The bank noted that IREN (IREN) mined the most Bitcoin, with 728, followed by MARA Holdings (MARA) with 703.

Jefferies said MARA's hash rate remained the highest in the sector, at 58.9 exahashes per second (EH/s) as of the end of July, with CleanSpark (CLSK) in second place at 50 exahashes per second (EH/s).

Revenue per EH/s also increased. “Assuming a BTC mining rig with a hash rate of 1 EH/s, daily revenue in July would be approximately $57,000, compared to approximately $56,000 in June and approximately $50,000 in the same period last year,” the analyst wrote.