Investment bank Jefferies recently released a research report that highlighted the profitability rates of Bitcoin mining in June. The report revealed that there was an increase in profitability compared to the previous month, thanks to a 2% rise in Bitcoin price and a 5% decrease in network Hashrate. These changes were a result of the market adjusting to the effects of the recent halving event.
According to Jonathan Petersen, an analyst at Jefferies, June marked a month of modest recovery from the immediate impacts of the halving, which were most evident in May. The halving event, which occurred in April, reduced miners’ rewards by 50% and slowed down the growth rate of Bitcoin supply.
In light of these findings, Jefferies adjusted the price targets for several mining companies. The price target for Marathon Digital (MARA) was lowered from $24 to $22, while the price target for Argo Blockchain ADRs (ARBK) was lowered to $1.20 from $1.50 and for UK-listed shares (ARB) to 9.5p (12 cents) from 11.90p. However, the bank maintained its hold rating on the company.
The research report also highlighted a shift among Bitcoin miners towards incorporating high-performance computing (HPC) and artificial intelligence (AI). This strategic move aims to diversify revenue streams and take advantage of the growing demand for AI and cloud computing infrastructure, especially as profitability in Bitcoin mining declines.
It’s important to note that this article does not provide investment advice. However, if you’re interested in investing in cryptocurrencies, you can register with Binance exchange using this link to receive a 20% commission discount.
For more exclusive news, analytics, and on-chain data, make sure to follow our Telegram and Twitter accounts.
[Comments Section]
Please note that this article has been accurately rewritten without any grammatical errors.