Bitcoin mining profits reached its highest monthly level since July’s last half of 2024. JP Morgan Analyst looked into this interesting data in notes.
Miners averaged $57,400 (Exahash/Second) per EH/s in daily block rewards.
“July was another strong month for Bitcoin miners. Mining profitability reached its highest level since the last half (April 2024), with 10 of the 13 miners we tracked outweighing the price rise of BTC by 8%.”
Bitcoin hit a record high of $122,838 in July, closing off a relatively stable rally that lasted for over two months. According to Coingecko data, prices have receved since their peak, but are within about 8% of their high.
However, miners also struggle with rising operating costs and lower rewards for blockchain transaction validation. “Daily revenue and gross profits are below preschool levels at 43% and 50% respectively,” the report said. Mining difficulties increased by 9% in July.
According to Farside Investor, a UK-based asset manager, the number of coins produced by the top 11 miners has declined for the fourth straight month in the first six months of the year. However, Farside has not released data for July yet. During the last half, the reward fell from 6.25 BTC to 3.125 BTC.
Bitcoin mining operations require significant power consumption and are expensive to operate when Bitcoin prices drop. The Bitcoin mining industry is usually made up of large storage areas filled with computers that handle transactions on a network. Due to the high energy demands of these computer networks, it is difficult to source at affordable prices.
*This is not investment advice.