- Bitcoin mining profitability increased by 18.2% in May.
- The price of Bitcoin (BTC) rose by 20% during the same month.
- The network hashrate saw a 3.5% increase, indicating higher mining competition and difficulty.
- U.S.-listed mining companies produced more Bitcoin, with production rising from 3,278 in April to 3,754 in May.
- MARA Holdings and CleanSpark led production, while Jefferies maintained a hold rating on MARA stock, lowering its price target.
Bitcoin mining profits rose sharply in May as Bitcoin’s price increased and U.S.-listed miners boosted their output. According to a research report by Jefferies, mining profitability went up 18.2% for the month, primarily driven by a 20% rise in the price of Bitcoin and a small 3.5% lift in the overall network hashrate.
Jefferies analysts Jonathan Petersen and Jan Aygul said the recent surge in Bitcoin’s price came alongside a Gold rally, as investors looked for assets that could help shield against inflation amid growing government deficits in the U.S. and other countries.
Hashrate, a measure of the total computational power miners use to process transactions on the Bitcoin network, serves as a sign of industry competition and how difficult it is to mine new coins. The report noted that U.S.-listed mining companies mined 3,754 BTC in May, up from 3,278 in April. North American miners made up 26.3% of total network activity last month, an increase from 24.1% in April.
MARA Holdings (MARA) mined the most Bitcoin in May at 950 BTC, up 35% month-over-month, according to the report. CleanSpark (CLSK) followed with 694 BTC mined. The report confirmed that MARA continued to hold the largest installed hashrate at 58.3 exahashes per second (EH/s), with CleanSpark in second place at 45.6 EH/s.
While Jefferies kept its hold rating for MARA stock, it lowered the company’s price target to $16 from $18. For additional context on mining performance, see the related coverage: JPMorgan-says/” style=”text-decoration:underline”>Bitcoin Miners Just Had One of Their Best Quarters on Record, JPMorgan Says.
Network hashrate refers to the amount of computing power used to mine and process transactions on a proof-of-work blockchain like Bitcoin. A higher hashrate signals rising competition among miners and increased mining difficulty.
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