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Bitcoin mining services firm Luxor raises $16 million to take its hardware and compute-trading playbook into AI
⚪NeutralIt is a modest private funding round for a mining-services company's AI push, with no direct link to any coin's supply or demand.News sentiment, not financial advice. It reflects the likely impact of this news, not a price prediction.
Summary
Luxor Technology, which sells mining-pool, software, hardware and hashrate-derivatives services to bitcoin miners, has raised $16 million in a round led by CMT Digital, The Block, Cointelegraph, Decrypt and Bitcoin Magazine reported.
Mining-hardware makers Canaan and MicroBT joined the round along with Halo, Steelhead and angel investors, according to The Block and Cointelegraph.
The company says the money will help it grow Luxor AI, launched in September, which applies its mining-industry hardware sourcing, cloud and compute-derivatives services to the AI market.
Luxor COO Ethan Vera told The Block the round mixed new preferred equity with secondary share sales, but he declined to share the split or the valuation.
Key facts
- "Compute markets are converging: the same miners, power sites and capital that served digital mining are now powering AI," Luxor co-founder and CEO Nick Hansen said.
- Before this deal Luxor had raised $6.575 million in primary capital across three rounds, and its last priced equity round was in 2021, Vera told The Block.
- Headcount has grown from 11 at the 2021 round to 106, and Luxor plans to hire about 12 more people by year-end, according to The Block.
- Luxor's hardware desk has traded more than $1 billion in bitcoin mining machines (ASICs), and its energy business services more than 75 megawatts of load in the ERCOT and SPP power markets, The Block reported.
- Its over-the-counter desk offers cash-settled options, forwards and backstops tied to compute-rental indexes, which Vera said let AI companies hedge, finance and speculate on compute.
- Cointelegraph said Luxor serves miners including Canaan and TeraWulf and is expanding GPU sourcing as chip supply chains become harder to navigate.
- Decrypt and Bitcoin Magazine also reported the CMT Digital-led round and its focus on AI compute trading and hardware.
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