Understanding Bitcoin Mining Profitability
In June, Bitcoin miners saw a slight improvement as the price of Bitcoin rose by 2% and the total hashrate decreased by 5%. This followed a challenging May where Bitcoin mining profitability hit an all-time low due to price pressure and fierce competition in the industry.
The Impact of Bitcoin Halving
On April 19, the Bitcoin network experienced its fourth halving event, reducing the minimum BTC reward per block from 6.25 BTC to 3.125 BTC. This event, coupled with a price decline, led Bitcoin’s “hashprice” to hit an all-time low on May 1.
- The total hashrate of Bitcoin as of July 6 stood at 573 exahashes per second (EH/s).
- Hashrate is a measure of competition in mining, with a higher hashrate indicating less profitability for individual miners.
- Other factors affecting profitability include the amount of Bitcoin earned by miners and the market price of BTC.
The Performance of Public Miners
U.S.-listed public miners saw an increase in Bitcoin mining output in June. Marathon Digital, the largest miner, extracted 590 BTC in June, a 4% decrease from May. On the other hand, CleanSpark extracted 445 BTC, marking a 7% increase from the previous month.
- U.S.-listed public miners captured a larger share of the network compared to the previous month.
- Marathon Digital’s price target was reduced, but the bank maintained its hold rating for the company.
- Miners are diversifying their revenue streams by entering high-performance computing due to declining Bitcoin mining profitability.
Hot Take: Bitcoin Mining Trends in 2024
In summary, the Bitcoin mining landscape in 2024 is marked by fluctuations in profitability driven by factors like halving events and market prices. Public miners are adapting to these challenges by expanding into high-performance computing to offset the impact of declining mining profitability.
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