Bitcoin Analysts at JP Morgan wrote in a memo released on Friday, Minor’s profit reached its highest monthly mark in July since the last half of April 2024.
Miners were able to earn an average of $57,400 per EH/s in their daily block reward revenue, writes analysts Reginald L. Smith and Charles Pearce.
“July was another strong month for Bitcoin miners,” the report read. “Mining profitability reached its highest level since its latest half (April 2024), with 10 of the 13 miners surpassing the rise in BTC prices that month (+8%).”
According to data provider Coingecko at Cryptocurrency Markets, Bitcoin capped fairly stable profits for more than two months in July, and has capped fairly stable profits for more than two months.
But miners also face continuing challengesThe increased operating costs and the difficulty of mining are coupled with the reduced rewards for verifying transactions on the blockchain. The report states that “daily revenue and total profit per EH/s are below dehydration levels at 43% and 50%, respectively.”
Over the course of a month, mining difficulties increased by 9%.
According to Farside Investor, UK Asset Managers, where data is not yet available for July, the number of tokens with cumulatively decreasing in the top 11 miners fell in the four or first six months of the year.
In the latest half, which takes place every four years, the rewards fell from 6.25 BTC to 3.125 BTC.
Mining operations that require significant electricity consumption face higher costs when Bitcoin prices drop.
Bitcoin mining is primarily composed of industrial-scale operations. It is usually a warehouse full of computers that handle transactions on a network. It is difficult to get the enormous amount of energy from these computer networks cheaply.
On Friday, shares of Mara Holdings, the world’s largest miner, fell 3.6%. Earlier in the week, it disclosed $238 million in second quarter revenue, jumping 64% from a year ago. Net income rose 505% to a record $808 million due to an increase of $1.2 billion in fair value of Bitcoin Holdings in Mara.