Jefferies: U.S.-listed Miners' July Bitcoin Mining Profits Fall, Marathon Digital Price Target Cut

Jefferies Investment Bank noted in a new research report that bitcoin mining profits fell slightly from June as the price of bitcoin fell more than 6 percent in July while network arithmetic remained stable, according to Coindesk. Jefferies cut its price target on shares of Marathon Digital to $17 from $22, but maintained a hold rating. The stock was down 0.7 percent to about $15 in premarket trading.

U.S.-listed mining companies produced more bitcoin in July, accounting for 21.1 percent of the network's total, up from 20.7 percent in May, according to the report. Analysts Jonathan Petersen and Joe Dickstein noted that public companies are adding capacity at a faster rate than the network's arithmetic is growing. marathon Digital produced 692 bitcoins in July, a 17 percent increase from the previous month, and its installed arithmetic remains the largest in the industry.

JPMorgan's report also noted that U.S.-listed miners' share of global arithmetic reached an all-time high in July. august will be more challenging for miners, as the bitcoin price has fallen about 5 percent and network arithmetic is starting to grow again.