Bitcoin (BTC) mining saw a resurgence in profitability during June, buoyed by a 2% increase in the cryptocurrency's price and a 5% decline in network hashrate, according to a recent report by investment bank Jefferies.

Analyst Jonathan Petersen noted in the report that June marked a period of recovery from the immediate impacts of Bitcoin's quadrennial halving event, which occurred in April. The halving slashed miners' rewards by 50%, effectively slowing the rate of Bitcoin's supply growth.

Hashrate, a measure of the total computational power securing the Bitcoin network, serves as a barometer for industry competition and mining difficulty. The decline in hashrate observed in June reflected adjustments within the mining ecosystem following the halving, contributing to improved profitability for miners.

Jefferies adjusted its price targets in response to these dynamics, lowering Marathon Digital's (MARA) target to $22 from $24, and reducing targets for Argo Blockchain (ARBK) and its U.K. traded shares (ARB) to $1.20 and 9.5p (12 cents), respectively, while maintaining a hold rating on the stocks.

The report highlighted a strategic pivot among bitcoin miners towards high-performance computing (HPC) and artificial intelligence (AI) hosting. This shift aims to diversify revenue streams amidst declining mining profitability, driven by increased demand for AI and cloud computing infrastructure.

U.S.-listed mining firms, including Marathon Digital and CleanSpark (CLSK), increased their share of new Bitcoin production in June. Marathon, despite mining 4% fewer Bitcoins than in May, maintained its position as the largest miner with 590 tokens mined. CleanSpark, with a 7% increase, mined 445 tokens.

Marathon Digital led in installed hashrate among U.S. miners with 31.5 exahashes per second (EH/s), followed by Riot Blockchain (RIOT) at 22 EH/s, underscoring their significant role in Bitcoin's mining landscape.

As Bitcoin mining continues to evolve post-halving, with miners adapting strategies to enhance profitability and resilience, the industry's dynamics remain pivotal amidst broader shifts towards digital asset technologies and infrastructure.