Summary
Bitcoin mining was more profitable in February compared to January due to a 15% price increase and a 9% slower hashrate growth. Publicly listed North American mining companies produced a smaller share of bitcoin as new hashrate came online from other sources. Marathon Digital is buying out hosting services as a defensive move, and Jefferies supports this strategy. The bank maintains a hold rating on Marathon Digital shares and increased its price target on hold-rated Argo Blockchain to $1.50. Analysts suggest that miners need to be proactive to maintain their positions after the halving.
Key Points
1. Bitcoin mining was more profitable in February than in January due to a 15% increase in the price of Bitcoin and a 9% slower increase in network hashrate.
2. Publicly listed North American mining companies produced a smaller share of Bitcoin compared to the previous month, dropping to 17.5% of the total network.
3. Marathon Digital changed its strategy to buy out hosting services as a defensive move ahead of the halving, leveraging its scale as a competitive advantage to grow and maintain market share.