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Bitcoin miners saw their margins improve in July, with profitability rising around 2% thanks to the cryptocurrency’s sustained price rally, according to a note from investment bank Jefferies. The move reflects how closely mining economics remain tied to Bitcoin’s market momentum, particularly after the April halving cut block rewards in half.
Jefferies’ analysts explained that the higher BTC prices have been offsetting some of the revenue challenges miners faced post-halving. The average Bitcoin price during July hovered above $100,000 for much of the month, which provided miners with a much-needed cushion. However, they also noted that energy costs, network difficulty adjustments, and increased competition continue to put pressure on margins, meaning the profitability boost was modest compared to Bitcoin’s price gains.
The report also highlighted that large-scale, publicly traded miners such as Marathon Digital, Riot Platforms, and CleanSpark were among the main beneficiaries of July’s uptick in mining economics. With access to cheaper energy deals and capital, these firms are better positioned than smaller operators to weather periods of difficulty increases and market volatility.
Despite the positive shift, Jefferies maintained a cautious outlook, reminding investors that mining remains a cyclical and capital-intensive business. They warned that while rising Bitcoin prices offer immediate relief, structural challenges—such as higher operating expenses, hardware upgrades, and global energy market fluctuations—will continue to test the resilience of the sector. Still, the July rebound provided some optimism that miners may be stabilizing after a turbulent few months following the halving.
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