Bitcoin mining profitability rose sharply in May, fueled by a strong rebound in Bitcoin’s market price and a relatively modest increase in network hashrate, according to a new report from U.S. investment bank Jefferies.
The firm noted that mining profitability surged 18.2% last month. The gain closely mirrored a 20% rise in the price of Bitcoin during the same period, while the network’s hashrate—the total computational power used to mine and secure the blockchain—grew by just 3.5%.
“BTC’s rally follows the recent gold rally as investors seek inflation-protected assets in anticipation of ballooning fiscal deficits in the U.S., among other countries,” Jefferies analysts Jonathan Petersen and Jan Aygul wrote in the June 3 research note, reviewed by CoinDesk.
Bitcoin Production on the Rise
U.S.-listed mining firms collectively mined 3,754 BTC in May, up from 3,278 BTC in April—a month-over-month increase of approximately 14.5%. Jefferies reported that North American miners accounted for 26.3% of global Bitcoin mining last month, rising from 24.1% in April.
Leading the charge was Marathon Digital Holdings (NASDAQ: MARA), which mined 950 BTC in May—an increase of 35% over April. CleanSpark (NASDAQ: CLSK) followed closely with 694 BTC produced, according to Jefferies data.
Marathon also maintained the highest installed hashrate in the sector at 58.3 exahashes per second (EH/s), with CleanSpark ranking second at 45.6 EH/s.
Price Targets Adjusted Amid Volatility
Despite the positive production metrics, Jefferies revised its price target for Marathon down from $18 to $16, maintaining a “Hold” rating. The adjustment likely reflects concerns around stock valuations and ongoing market volatility surrounding cryptocurrency-related equities.
Bitcoin briefly crossed the $105,000 threshold in early June, buoyed by global macroeconomic uncertainty, geopolitical risk, and increased investor appetite for decentralized assets. Many analysts draw parallels between the recent surges in gold and Bitcoin as both are seen as hedges against inflation and fiscal instability.
The boost in profitability comes just over a year after Bitcoin’s fourth halving in April 2024, which reduced mining rewards from 6.25 BTC to 3.125 BTC per block. While price appreciation has helped offset this impact, miners continue to face pressure to improve operational efficiency and reduce costs.
“This year’s halving has separated well-capitalized, efficient miners from the rest,” said Ethan Vera, COO of crypto mining services firm Luxor Technologies. “Only those with low-cost power and cutting-edge equipment can remain profitable in this environment.”
Miners have increasingly adopted strategies such as migrating to regions with cheaper energy, investing in high-efficiency ASIC hardware, and leveraging renewable power sources to remain competitive.
Regulatory and Strategic Outlook
The North American mining sector continues to expand, bolstered by investor confidence and regulatory clarity in states like Texas and Wyoming. However, miners remain cautious amid ongoing scrutiny over energy consumption and environmental impact.
“The U.S. still provides one of the most stable environments for Bitcoin mining,” said Mike Levitt, CEO of Core Scientific, in a recent industry panel. “But ESG pressure and energy pricing remain real concerns.”
Looking ahead, continued profitability will likely depend on the trajectory of Bitcoin’s price, network difficulty adjustments, and broader macroeconomic trends. Analysts suggest that if Bitcoin sustains its current range above $100,000, most large-scale miners will remain profitable—even with increasing competition.
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