Bitcoin mining profitability experienced a modest but significant 2% increase in July 2025, according to a research report released by investment bank Jefferies on August 17th. The improvement was primarily driven by a 7% increase in Bitcoin prices during the month, which outpaced a 5% rise in network hash rate, creating more favorable economics for mining operations.
Profitability Metrics Show Incremental Gains
The Jefferies analysis reveals that mining revenue per exahash per second reached approximately $57,000 daily in July, compared to $56,000 in June and $50,000 during the same period last year. This represents a meaningful year-over-year improvement of 14% in daily revenue generation per unit of computational power.
“We see positive BTC price momentum as most favorable for Galaxy’s (GLXY) digital assets business, while miners fight a rising network hashrate,” noted Jefferies analyst Jonathan Petersen. This observation highlights the ongoing tension between price appreciation benefits and increased mining difficulty that characterizes the current market environment.
U.S. Mining Companies Expand Market Share
American-listed Bitcoin mining companies demonstrated operational expansion during July, collectively mining 3,622 Bitcoin compared to 3,379 coins in June – a 7.2% month-over-month increase. These firms now represent 26% of total network mining activity, up from 25% in June, indicating a gradual consolidation of mining power among publicly traded entities.
IREN emerged as the most productive miner with 728 Bitcoin extracted, while Marathon Digital Holdings (MARA Holdings) followed closely with 703 BTC. Marathon Digital Holdings maintained its position as the sector leader in terms of computational capacity, operating at 58.9 exahashes per second by month’s end, with CleanSpark trailing at 50 EH/s.
Short-Term Financial Implications
The 2% profitability improvement, while modest, occurs against a backdrop of rising operational complexity. The 5% increase in network hash rate signals intensifying competition among miners, which typically compresses margins over time. However, the larger 7% Bitcoin price appreciation provided sufficient cushion to maintain positive momentum.
This dynamic suggests that mining operations with superior cost structures and energy efficiency will continue to outperform, particularly as hash rate growth shows no signs of abating. Companies like MARA, which maintains electricity costs around 4 cents per kilowatt hour, are positioned to capture disproportionate benefits from price increases.
Long-Term Strategic Considerations
The incremental profitability gains mask underlying structural shifts in the mining industry. As hash rate continues climbing toward 900 EH/s globally, mining companies face mounting pressure to secure low-cost energy sources and deploy next-generation hardware to remain competitive.
The concentration of mining power among U.S.-listed companies reflects broader trends toward geographic diversification away from traditional mining centers and increasing institutional participation in Bitcoin network security. This shift carries implications for regulatory oversight, capital access, and operational transparency within the mining ecosystem.
Furthermore, the relatively small profitability improvement despite significant price appreciation suggests the industry is approaching a maturation phase where marginal gains become increasingly difficult to achieve without substantial capital investment or operational innovation.
The Jefferies report underscores that while current conditions favor established mining operators with efficient cost structures, the window for extraordinary profit margins continues to narrow as competition intensifies and the Bitcoin network’s computational requirements grow exponentially.
