In July 2025, Bitcoin miners' revenues reached a peak since the halving event. JPMorgan highlights an increase in revenues, a rise in hash rate, and intensifying competition. What does this mean for the cryptocurrency market?
Record Profitability Following April Halving
July 2025 marked the most profitable month for Bitcoin miners since the last block reward halving in April 2024. According to JPMorgan analysts, the average daily revenue from mining was approximately $57,400 per 1 EH/s (exahash per second) of computational power. This figure was about 4% higher than June's, setting a record following the halving event.
The principal factor behind the revenue growth for miners was the strong upward trend in Bitcoin prices. In July, the value of the leading cryptocurrency briefly surpassed $120,000, breaking the historical maximum. This significant price increase boosted the dollar revenues from each mined block, partially offsetting the effects of the reward reduction.
Halving Consequences: Revenues Below Previous Levels
Despite record revenues in July, mining profitability remains significantly lower than levels observed before the 2024 halving. JPMorgan's report indicates that daily revenue and gross profit per 1 EH/s are still approximately 43% and 50% below what they were before the most recent halving. In simple terms, even new records have not compensated for the loss of half of the revenues following the block reward reduction.
The reduction of the mining reward (halving) is a scheduled event that occurs approximately every four years. The latest halving took place in April 2024, reducing the reward for finding a block from 6.25 BTC to 3.125 BTC. This halving has drastically cut miners' revenues. Although Bitcoin's price has substantially increased since then, it has not been sufficient to fully restore previous mining profitability.
Hash Rate Growth Signals Expansion in Mining
Alongside rising revenues, there has been an increase in the total computational power participating in mining. In July, the average hash rate of the Bitcoin network rose by about 4% compared to June, reaching approximately 899 EH/s. In comparison, the previous month saw some miners temporarily reduce their activity due to abnormal heat and high electricity prices, resulting in a brief decline in hash rate. The recovery and increase in power in July indicate the connection of new installations and the return of previously shut-down capacities, signaling an overall expansion in mining.
An increase in hash rate typically indicates intensified competition in the industry, as more participants and machinery compete for a limited number of new blocks. For individual companies, this means the necessity to scale up their own capacities to maintain market share and Bitcoin output.
Mining Difficulty at New Heights
In tandem with the hash rate, another key indicator—mining difficulty—has also reached record levels. In July, network difficulty increased by another 9%, and compared to the period before the April halving, this parameter surged by approximately 48%. Mining difficulty reflects how hard it is for miners to find new blocks: it is automatically adjusted every ~2 weeks to maintain a stable block generation time (about 10 minutes) regardless of hash rate changes.
The current record levels of mining difficulty mean that extracting Bitcoins is now harder and costlier than ever. Miners are required to perform significantly more computations to receive the same reward. Thus, even amidst rising dollar revenues, competition among miners has intensified, and the profitability of each individual installation remains under pressure. Higher electricity bills and the need for investment in new, more efficient equipment become inevitable costs to maintain profitability.
Mining Companies' Stocks Outperform Bitcoin
The market dynamics of publicly traded mining companies' stocks in July outperformed Bitcoin itself. According to JPMorgan, out of 13 tracked public miners, 10 companies experienced stock price increases, surpassing the BTC price rise (~+8% for the month). Investors positively assessed the improved financial performance of miners amid the rising cryptocurrency prices, reflecting in increased stock prices.
- Argo Blockchain (ARBK) – stock prices soared by an impressive 66% over the month, becoming the industry leader.
- Marathon Digital Holdings (MARA) – shares of the largest miner also saw significant gains (double-digit percentage increase).
- Riot Platforms (RIOT) – shares of one of the leading US mining firms exhibited strong double-digit growth.
- Core Scientific (CORZ) – stood out negatively in the overall positive landscape, as its stock price fell by about 21% in July, marking the worst performance in the sector.
Consolidation and Expansion in the Mining Industry
Current trends indicate continued consolidation and investment growth in the mining sector. Major players are ramping up capacities and attracting capital, including through public listings:
- American Bitcoin Corporation (ABC) – a mining firm linked to Donald Trump's family is planning a Nasdaq listing through a merger with Gryphon Digital Mining. A shareholder vote on the merger is scheduled for August 27 after receiving approval from regulators. ABC currently holds about 10 EH/s of capacity and aims to increase it to ~25 EH/s, partly by acquiring installations from Canadian firm Hut 8.
- Marathon Digital – the largest public miner in the world is changing its equipment sourcing approach in favor of US suppliers. In the first half of 2025, Marathon invested $85.4 million in California-based startup Auradine, receiving new mining equipment (Teraflux installations) valued at $73.3 million. This move allows for the diversification of its fleet, reducing reliance on traditional manufacturers like China’s Bitmain.
- Localization of Production – amid geopolitical and logistical risks, foreign ASIC miner manufacturers are striving to localize production in the U.S. Chinese firm Canaan has started expanding its equipment production within U.S. territory, while industry leader Bitmain has announced plans to open a full-fledged production facility in the U.S. by early 2026.
- Increasing Share of Public Companies – according to BitcoinMiningStock estimates, publicly traded mining firms collectively control about 37.5% of the global Bitcoin hash rate. This reflects the growing role of large corporate players in an industry that was more distributed among numerous small private farms just a few years ago.
Conclusions and Outlook for Investors
Recent data indicates a noticeable recovery in Bitcoin mining profitability following a challenging post-halving period. The rise in BTC prices to new highs has led to increased dollar revenues for miners, positively impacting their financial results. Many mining companies' stocks have demonstrated superior dynamics, confirming that investors see high prospects in this segment within the bullish cryptocurrency market environment.
However, industry risks persist. Even with record revenues in absolute terms, mining profitability remains under pressure due to increased network difficulty and reduced rewards. Competition is intensifying: rising costs for electricity and equipment compel miners to continuously improve efficiency. The strongest players are consolidating and increasing their market share, while smaller miners may gradually be displaced.
For investors, the mining segment remains attractive but volatile. During periods of Bitcoin growth, mining companies' stocks may outperform the market, as seen in July. However, the downside is high sensitivity to cryptocurrency price declines and technological risks. Diversification and careful analysis of management effectiveness and cost structures across different companies are key to successful investments in this area. While a positive trend in the Bitcoin market is maintained, the mining sector has chances for further growth, although it remains dependent on external factors, such as price volatility and the availability of cheap energy.
