Bitcoin mining rigs operating in a data center, illustrating the increase in mining profitability.

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Bitcoin mining rigs operating in a data center, illustrating the increase in mining profitability.
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Bitcoin Mining Profitability Rose in June as Market Adjusted for the Halving

One of the signs of this was the Mining Profitability which showed growth in June. BTC mining profit was shown to be higher in June compared to May because of a report from the Jefferies investment bank. There was a profit increase due to a 2% increase in the price of Bitcoin and the fact that the network hash rate was both down by 5%. This is a total of the computational power employed, which accounts for the mining and processing of the transactions. There have been changes in the mining token quantity, a proof-of-work issue, as a result. This was, however, done shortly after the market was struck by the quadrennial reward halving of April, which had seen miners’ revenue cut in half by half.

Halving Affects

The event of halving, which happens every four years, is a kind of collection that is set up to reduce the supply of money and slow the process of money creation. Although initially the miners had lower gains, the market equaled out as of the late May. “While the time period between, May and the halving were the direct results of the halving’s most pronounced hit, June represented the time where they began to heal”, commented Jonathan Petersen Jefferies analyst.

Jefferies’ New Replaced Price Targets

However, Jefferies’ upbeat statements about miners’ profitability did not guarantee those companies of a positive valuation. The bank did already effect on some mining company’s price targets as they recently sent out the updated report. The bank Marked down Marathon Digital (MARA) Price Target to $24, down from $22 and Argo Blockchain ADRs (ARBK) was re-evaluated by cutting prices from $1.50 to $1.20. Also, the bank brought down the rating for Argo Blockchain’s UK-Listed shares to 9.5p from 11.9p. “on the losing side, Jefferies put their rating to” Still, they remained in their position on hold on these companies.

Strategic Shifts in Mining Companies

A number of mining companies that have been facing the problem of Bitcoin profitability after the halving are now expanding their operations. Most of them have turned to high-performance computing (HPC) and AI hosting to benefit from the increasing demand for AI and cloud computing infrastructures. “The transformation of the company’s strategy was motivated primarily by the decrease of profitability in bitcoin mining especially after the halving episodes, according to Petersen,” he said.

U.S. Mining Companies’ Performance

The U.S. companies that are listed on the stock exchange have become dominant in the Bitcoin trade in June, as 20.8% of the new coins were produced by them, up from 19.1% in May. This was made possible mainly thanks to the addition of new mining power and the decrease in the network hashrate. Marathon Digital became the leader of the production by mining 590 bitcoins in June while it was still 4% less than in May. CleanSpark (CLSK) increased its production by 7%, mining 445 tokens.

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Marathon Digital keeps its position as the company with the largest installed computing speed among other U.S. mining companies, with 31.5 exahases per second (EH/S), while Riot Platforms (RIOT) is the runner-up with 22 EH/s.

Conclusion

The growth of Bitcoin mining profitability during June is a concrete proof of the industry’s capacity to survive and adapt to big and fast changes in the environment such as halving. Through the strategic shift towards AI and HPC hosting, mining companies are not only reducing the negative effects of reducing mining rewards but also recognizing themselves with a pedestal to arise and to grow in future high technologies.

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