Bitcoin mining proved to be more profitable in February as the cryptocurrency experienced a 15% surge in value. Despite the nearly doubled hashrate compared to a year ago, publicly traded miners witnessed a decline in market share, according to Jefferies.
The investment bank adjusted its price target for Marathon Digital to $24 while raising Argo Blockchain’s to $1.50. Jefferies attributed the profitability increase to Bitcoin’s price hike of 15% in February, coupled with a slower 9% growth rate in network hashrate.
Publicly listed North American mining companies accounted for a smaller share of Bitcoin production, dropping to 17.5% from 19% the previous month. This decline occurred as new hashrate emerged from alternative sources. Jefferies highlighted Marathon Digital’s shift in strategy towards acquiring hosting services as a defensive move before the halving event.
Despite acknowledging Marathon Digital’s competitive advantage in scaling up its operations, Jefferies adjusted its price target for the company due to concerns about downtime at Applied Digital sites. Meanwhile, the bank increased its price target for Argo Blockchain, anticipating accelerated growth in hashrate with higher bitcoin prices and reduced capital expenditure on mining facility development.