Jefferies recently lowered the recommendation for Marathon Digital Holding's shares to $17.
They claim that Bitcoin mining became less profitable in July and may continue to decline in the coming months.
Bitcoin (BTC)
mining profitability experienced a slight decline in July compared to the
previous month, according to a recent report from investment bank Jefferies.
The
analysis points to a drop in Bitcoin's price as the primary factor impacting
miners' margins. As a result, the institution decided to lower the target price
for the largest Bitcoin miner on Wall Street, Marathon Digital Holdings
(Nasdaq: MARA), by over 20%.
Bitcoin Mining
Profitability Dips in July, Jefferies Reports
The
cryptocurrency's value fell by over 6% in July, while the network's hashrate—a measure of computational power dedicated to mining—remained relatively
stable. This combination of factors put pressure on mining operations, despite
an increase in production share for US-listed companies.
Jefferies
analysts noted that publicly traded mining firms expanded their collective
output, capturing 21.1% of total Bitcoin production in July, up from 20.7% in
June. This growth in market share was attributed to these companies bringing
new capacity online at a faster rate than the overall network expansion.
Marathon
Digital Holdings, a prominent player in the sector, stood out with a notable
increase in production. The company mined 692 bitcoins in July, representing a
17% month-over-month rise. Marathon continues to lead the industry in terms of
installed hashrate capacity.
Looking
ahead, Jefferies anticipates more challenging conditions for miners in August.
The bank's report highlights a further 5% decline in Bitcoin's price since the
beginning of the month, coupled with renewed growth in network hashrate, which
could squeeze profit margins even tighter.
In light of
these developments, Jefferies has adjusted its outlook on Marathon Digital. The
bank lowered its price target for the company's stock from $22 to $17 while
maintaining a “hold” rating.
Is
Jefferies right? Time will tell. For now, Marathon Digital Holdings is taking
steps to capitalize on lower Bitcoin prices by purchasing $249 million worth of
BTC.
“We
currently own and operate approximately 54% of the 1.1 gigawatts of power in
our diversified portfolio of digital asset compute,” commented Fred Thiel,
MARA's Chairman and CEO. “We will continue making owned and operated sites a
greater percentage of our fleet over time and expect to see cost savings on a
cost per petahash basis as this occurs. Longer-term, our intention is to be
amongst the lower cost operators in the industry.”
The
evolving landscape of Bitcoin mining underscores the industry's sensitivity to
cryptocurrency price fluctuations and network dynamics. As the sector continues
to mature, miners face the ongoing challenge of balancing operational costs
with volatile market conditions.
The Q2 2024
results published by HIVE Digital Technologies (NASDAQ: HIVE) and TeraWulf
(NASDAQ: WULF) showed that Bitcoin miners are able to withstand negative market
changes following the recent halving. HIVE increased its revenue by 37%, while
WULF saw a 130% increase.
Bitcoin (BTC)
mining profitability experienced a slight decline in July compared to the
previous month, according to a recent report from investment bank Jefferies.
The
analysis points to a drop in Bitcoin's price as the primary factor impacting
miners' margins. As a result, the institution decided to lower the target price
for the largest Bitcoin miner on Wall Street, Marathon Digital Holdings
(Nasdaq: MARA), by over 20%.
Bitcoin Mining
Profitability Dips in July, Jefferies Reports
The
cryptocurrency's value fell by over 6% in July, while the network's hashrate—a measure of computational power dedicated to mining—remained relatively
stable. This combination of factors put pressure on mining operations, despite
an increase in production share for US-listed companies.
Jefferies
analysts noted that publicly traded mining firms expanded their collective
output, capturing 21.1% of total Bitcoin production in July, up from 20.7% in
June. This growth in market share was attributed to these companies bringing
new capacity online at a faster rate than the overall network expansion.
Marathon
Digital Holdings, a prominent player in the sector, stood out with a notable
increase in production. The company mined 692 bitcoins in July, representing a
17% month-over-month rise. Marathon continues to lead the industry in terms of
installed hashrate capacity.
Looking
ahead, Jefferies anticipates more challenging conditions for miners in August.
The bank's report highlights a further 5% decline in Bitcoin's price since the
beginning of the month, coupled with renewed growth in network hashrate, which
could squeeze profit margins even tighter.
In light of
these developments, Jefferies has adjusted its outlook on Marathon Digital. The
bank lowered its price target for the company's stock from $22 to $17 while
maintaining a “hold” rating.
Is
Jefferies right? Time will tell. For now, Marathon Digital Holdings is taking
steps to capitalize on lower Bitcoin prices by purchasing $249 million worth of
BTC.
“We
currently own and operate approximately 54% of the 1.1 gigawatts of power in
our diversified portfolio of digital asset compute,” commented Fred Thiel,
MARA's Chairman and CEO. “We will continue making owned and operated sites a
greater percentage of our fleet over time and expect to see cost savings on a
cost per petahash basis as this occurs. Longer-term, our intention is to be
amongst the lower cost operators in the industry.”
The
evolving landscape of Bitcoin mining underscores the industry's sensitivity to
cryptocurrency price fluctuations and network dynamics. As the sector continues
to mature, miners face the ongoing challenge of balancing operational costs
with volatile market conditions.
The Q2 2024
results published by HIVE Digital Technologies (NASDAQ: HIVE) and TeraWulf
(NASDAQ: WULF) showed that Bitcoin miners are able to withstand negative market
changes following the recent halving. HIVE increased its revenue by 37%, while
WULF saw a 130% increase.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
Kraken Argues Cryptos Are Not “Illegal Securities”: Seeks Jury Trial against SEC Lawsuit
Transformation in the APAC Trading Landscape and Beyond | FMPS:24
Transformation in the APAC Trading Landscape and Beyond | FMPS:24
As the financial services industry experiences rapid and transformative changes, leading fintech experts and policymakers come together to discuss the present and future of retail trading and the evolving regulatory landscape. Join this insightful session for a forward-looking perspective on the trends, innovations, and trader needs that are shaping the future of offerings on a global scale.
Speakers:
Eric Blewitt, CEO, Investment Trends
Rhys Bollen, Senior Executive Leader, Digital Assets, Australian Securities and Investments Commission (ASIC)
Michael Bogoevski, Head of Institutional Sales, CMC Connect
Karin Setchell, General Manager, Product & Investing Solutions, CommSec
#fmps #fmps24 #fmevents #RetailTrading #FintechInnovation #FinancialRegulation #DigitalAssets #GlobalFinance
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Follow FMevents across our social media platforms for news, insights, and event updates.
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As the financial services industry experiences rapid and transformative changes, leading fintech experts and policymakers come together to discuss the present and future of retail trading and the evolving regulatory landscape. Join this insightful session for a forward-looking perspective on the trends, innovations, and trader needs that are shaping the future of offerings on a global scale.
Speakers:
Eric Blewitt, CEO, Investment Trends
Rhys Bollen, Senior Executive Leader, Digital Assets, Australian Securities and Investments Commission (ASIC)
Michael Bogoevski, Head of Institutional Sales, CMC Connect
Karin Setchell, General Manager, Product & Investing Solutions, CommSec
#fmps #fmps24 #fmevents #RetailTrading #FintechInnovation #FinancialRegulation #DigitalAssets #GlobalFinance
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Executive Interviews with Joe Li & Simon Naish | ATFX | FMPS:24
Executive Interviews with Joe Li & Simon Naish | ATFX | FMPS:24
In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.
#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage.
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In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.
#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Ready to Scale? Regtech in Australia, A Global View | FMPS:24
Ready to Scale? Regtech in Australia, A Global View | FMPS:24
In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.
Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.
Speakers:
Dickie Currer, National Lead, Tech Australia Advocates
Deborah Young, CEO, The RegTech Association
#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation
📣 Stay updated with the latest in finance and trading!
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In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.
Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.
Speakers:
Dickie Currer, National Lead, Tech Australia Advocates
Deborah Young, CEO, The RegTech Association
#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
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Resilience in Trading: From Third Class To World Class | FMPS:24
Resilience in Trading: From Third Class To World Class | FMPS:24
Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
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Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
📣 Stay updated with the latest in finance and trading!
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IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
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For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
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