U.S.-Listed Bitcoin Miners Ramp Up Production Despite Falling Prices—A Hidden Profit Opportunity or a Risky Gamble?

As Bitcoin’s price tumbled below $57,000—a decline of over 8.70% in just one week—bearish sentiment has intensified. However, U.S.-listed mining companies have bucked the trend by ramping up their Bitcoin production despite a notable drop in the network’s hashrate.

Bitcoin mining became more profitable in June despite a drop in the network’s hashrate and a decline in the cryptocurrency’s price.

Fresh data showed that U.S.-listed mining companies ramped up their BTC production despite the network hashrate falling by 5% in June.

Bitcoin Standard Hashrate Falls, But Mining Becomes More Profitable

Bitcoin (BTC) fell below $57,000 on Monday, marking a decline of over 8.70% in just one week. Bearish sentiment intensified as the world’s largest cryptocurrency continued to slip.

However, U.S.-listed mining companies seemed to be bucking the trend by ramping up their Bitcoin production despite a notable drop in the network’s hashrate.

According to data from mining pool BTC.com, Bitcoin’s hashrate fell by 5% in June while the cryptocurrency’s price saw a modest increase of 3%.

This scenario made Bitcoin mining more profitable in June compared to May, despite the cryptocurrency’s price also increasing during that period.

A report by investment bank Jefferies highlighted that this trend was largely due to the effects of the April halving, which initially slowed Bitcoin’s supply growth but now contributes to improved mining profitability.

Analyst Jonathan Petersen explained that the halving, which cut miners’ rewards by 50%, initially slowed Bitcoin’s supply growth.

However, this reduction in rewards ultimately led to increased mining profitability as the network adjusted.

In June, U.S.-listed mining firms increased their share of new bitcoins mined to 20.8% of the total network output, up from 19.1% in May. This boost in output coincided with these companies enhancing their mining capacities even as the overall network hashrate declined.

Mining Giants Ramp Up Output, Impact on Mining Difficulty

Data showed that Marathon Digital remained the leading miner in June, producing 590 bitcoins—slightly fewer than in May. CleanSpark also experienced a 7% increase, mining 445 bitcoins.

Jefferies also noted that the difficulty adjustment, which occurred on June 29, saw a 0.3% increase—the smallest in over two months.

This increase was attributed to lower participation by large miners, likely due to selling pressure and the upcoming market structure changes.

Moreover, the report highlighted that several miners faced challenges in ramping up capacity due to permitting delays, supply chain issues, and rising energy costs.

Despite these obstacles, mining companies continued to expand their operations, targeting a total capacity of 10.2 EH/s by year-end, compared to the current network hashrate of 280 EH/s.

The bank maintained its hold rating, considering these companies’ strategic shift towards high-performance computing (HPC) and artificial intelligence (AI) hosting as a means to diversify revenue streams amid declining Bitcoin mining profitability.

Bitcoin Price Drops Despite Increased Mining Output

Interestingly, despite the increased Bitcoin production by mining companies in June, the cryptocurrency’s price declined.

This drop was largely attributed to selling and profit-taking by large investors (whales) and mid-sized miners.

Although there were sales from entities like Mt. Gox and the German government, their impact on the Bitcoin market was minimal.

Several on-chain metrics suggested that Bitcoin was oversold when its price dropped to approximately $53,000.

This oversold condition may have triggered a sharp rebound, as traders’ unrealized profits reached lows not seen since the FTX collapse, indicating that a market correction may be imminent.

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