Bitcoin mining operations experienced a surge in profitability during July, marking the most lucrative period since the previous Bitcoin halving, according to a recent analysis from JPMorgan Chase & Co. (JPM).
Analysts Reginald Smith and Charles Pearce noted that Bitcoin miners generated approximately $57,400 per EH/s in daily block reward revenue on average throughout July. This figure represents a 4% increase compared to June and signifies the highest earning potential observed since the halving event.
However, the report authors also pointed out that “daily revenue and gross profit per EH/S remain significantly lower than levels seen before the most recent halving, sitting at 43% and 50% below those benchmarks, respectively.”
The Bitcoin halving, an event occurring roughly every four years, reduces the block reward miners receive. The last halving, which took place in April 2024, decreased the reward from 6.25 BTC to 3.125 BTC per block.
The average monthly network hashrate, an indicator of both competition and difficulty in Bitcoin mining, increased by 4% to reach 899 exahashes per second (EH/s) in July, reversing a decline seen in June that was attributed to rising temperatures, the analysts explained.
The report also indicated that mining difficulty increased by 9% by the end of July, and is now 48% higher than its level before the latest halving.
The JPMorgan analysis showed that ten out of the thirteen U.S.-listed Bitcoin mining companies monitored by the bank outperformed Bitcoin itself in terms of market performance during July.
Regarding individual stock performance, Argo Blockchain (ARBK) demonstrated strong results with a 66% gain, while Core Scientific (CORZ) lagged behind the group with a 21% decrease, the report elaborated.
Learn More: Bitcoin Network Hashrate Declined in June as Miners Reacted to Recent Heatwave: JPMorgan