Investment Bank Jefferies’in According to the research report, Bitcoin (BTC) Mining saw an increase in profitability in June compared to May.

Bitcoin Mining Profitability Soars in June

This increase in profitability was driven by a 2% increase in the Bitcoin price and a 5% decrease in the network hashrate as the market adjusted to the effects of the recent halving event.

“June was a modest recovery month from the immediate effects of the halving that were most pronounced in May,” Jefferies analyst Jonathan Petersen wrote in the report.

Network Hashrate, which measures the total computing power used to mine and process transactions on a proof-of-work blockchain, serves as an indicator of competition and mining difficulty.

The quadrennial reward halving in April reduced miners’ rewards by 50%, slowing the growth rate of Bitcoin’s supply.

Jefferies also adjusted price targets for several mining companies. The price target for Marathon Digital (MARA) was lowered from $24 to $22.

The bank also lowered its price target on Argo Blockchain ADRs (ARBK) to $1.20 from $1.50 and on the UK-listed shares (ARB) to 9.5p (12 cents) from 11.90p, maintaining a hold rating on the company. One ADR is equivalent to 10 shares.

The report highlighted a strategic shift among Bitcoin miners towards hosting high-performance computing (HPC) and artificial intelligence (AI).

This drive aims to diversify revenue streams and capitalize on the growing demand for AI and cloud computing infrastructure, driven by the declining profitability of bitcoin mining, especially after the halving events.

*This is not investment advice.

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