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

Bitcoin

miners enjoyed another strong month in July, with profitability reaching the highest level since the last halving event, Wall Street bank JPMorgan (JPM) said in a research report Friday.

"Bitcoin miners earned an average of $57,400 per EH/s in daily block reward revenue in July, up 4% from June, representing the highest level since the halving," analysts Reginald Smith and Charles Pearce wrote.

Still, "daily revenue and gross profit per EH/S are still 43% and 50% below pre-halving levels, respectively," the authors wrote.

The Bitcoin halving is a quadrennial event where the reward for mining new blocks is halved. The most recent halving was in April 2024, reducing the reward from 6.25 to 3.125 $BTC per block.

The monthly average network hashrate, a proxy for competition in the industry and mining difficulty, rose 4% to 899 exahashes per second (EH/s) in July, after a decline in June in response to warmer temperatures, the analysts wrote.

Mining difficulty was 9% higher at the end of last month, and 48% higher than before the last halving event, the report said.

Ten of the thirteen U.S.-listed miners that the bank tracks outperformed bitcoin in July.

In terms of stock performance, Argo Blockchain (ARBK) outperformed with a 66% gain, while Core Scientific (CORZ) underperformed the group with a 21% decline, the report added.

Read more: Bitcoin Network Hashrate Declined in June as Miners Reacted to Recent Heatwave: JPMorgan