Despite the ups and downs of the market, the profitability of Bitcoin mining increased in June due to the increase in the price of BTC and the drop in the network's hashrate.
According to a research report from investment bank Jefferies, Bitcoin mining profitability saw a moderate increase last month, as the market continued to adjust to the effects of the fourth Bitcoin halving.
The bank's analyst, Jonathan Petersen, noted that June was a month of "modest recovery from immediate halving impacts, which were more pronounced in the month of May.
The impact of halving on the profitability of Bitcoin mining
Halving is an event that occurs on the Bitcoin blockchain approximately every 4 years and halves the rewards miners receive for mining new blocks and confirming transactions on the chain. This event slows down the growth rate of Bitcoin supply in the market as miners' rewards are reduced by 50%.
But the halving also affects the profitability of the miners who operate on the network, since they receive fewer bitcoins for creating the blocks and validating the transactions.
Since the fourth halving was implemented, the profitability of network miners has plummeted, leading many to look for alternatives in other fields.
US Crypto Miners Benefit
US-listed Bitcoin mining companies produced a higher proportion of Bitcoin in June than in May, the bank's report said, as they worked to increase their energy capacity while the Bitcoin hashrate declined.
Hashrate refers to the total combined computing power of crypto mining equipment connected to the blockchain network, which is used to mine and process transactions on the proof-of-work (PoW) blockchain. Hashrate is a metric that serves as an indicator of the difficulty of mining bitcoins, the robustness of the network, and the competition in the industry.
According to the Jefferies report, in June, American Bitcoin mining companies produced a higher proportion of new bitcoins relative to the month of May, increasing to 20,8% of the network from 19,1% the previous month.
In the case of Marathon Digital Holdings, The company mined the largest amount of bitcoins in June, with a total of 590 BTC, although this amount was 4% less than what was mined in May.
CleanSpark was the second crypto mining company in terms of the amount of bitcoins mined, with a total of 445 BTC in June, which represents an increase of 7%, according to the report. Likewise, Marathon Digital Holdings' installed hashrate remained the highest of the US-listed miners, at 31,5 exahashes per second (EH/S), followed by the company Riot Platforms, with a 22 EH/s.
Today, the bitcoin hashrate At a global level it stands at 609,61 EH/s, showing a decrease of 17% in the last month.
Bitcoin miners look for diversification alternatives
The bank also noted that those companies and miners that are being most affected by the low profitability of mining, especially after the arrival of the fourth Bitcoin halving, have turned towards new alternatives, such as high performance computing (HPC) and the artificial intelligence (AI) hosting, in order to diversify their income and capitalize on the growing demand for these new technological innovations.
Bitcoin mining has become very popular around the world, attracting new players, such as Tether Limited y Deutsche Telekom, and encouraging companies that already participate in this market to expand their operations. However, despite its attractiveness, it is not a cheap business, since it requires the purchase of special devices for mining cryptocurrencies and depends on energy costs, which vary depending on the location of the data centers and crypto mining farms.
According to the MacroMicro portal, the average cost of mining 1 BTC is approximately $71.000, while the current price of the cryptocurrency in the market is $57.000. This leaves the relationship between the average cost of crypto mining and the price of BTC at a ratio of 1:28.
