TLDR
- Luxor Technology raised $16 million in a round led by CMT Digital.
- Canaan, MicroBT, Halo, Steelhead and angel investors also took part.
- The money will fund AI cloud, hardware sourcing, compute trading and about 12 new hires.
- Luxor launched Luxor AI in September, built on its bitcoin mining tools.
- Its headcount grew from 11 in 2021 to 106 today.
Luxor Technology, a company that builds tools for bitcoin miners, has raised $16 million in a new funding round. CMT Digital led the round, which was announced on Tuesday.
Canaan, MicroBT, Halo, Steelhead and several angel investors also joined. The round included both new company funding and sales of existing shares.
How the funding round worked
Luxor COO Ethan Vera told The Block that the new money was preferred equity. The share sales were a mix of preferred and common equity. He said the share sales were meant to bring new strategic investors into the round.
Vera did not share the exact split between the two. He also did not share the company’s valuation. He did not say whether any investors received board seats, observer roles or advisory positions.
Luxor began raising capital in August and closed that part of the round in October. Its last priced equity round came in 2021, when it raised $5 million in a Series A led by NYDIG.
Before this deal, the company had raised $6.575 million across three rounds. Vera said the company waited to raise more until it had a clear use for the money. He said the move into AI gave it one.
Plans for the proceeds
Luxor plans to use the funds to grow its cloud platform and its AI hardware business. It also plans to expand its compute derivatives trading and hire more staff. The company expects to add about 12 people in engineering, product, and sales and marketing by the end of the year.
Its hardware business sources GPUs and AI servers for customers. Luxor said global chip supply chains have become increasingly hard to navigate.
The cloud platform offers sandboxes and runners for AI agents, along with AI code review. Luxor said the platform had run 1.8 million workloads this year as of September.
From bitcoin mining to AI
Luxor’s bitcoin business includes a mining pool, software for running mining machines, hardware trading, energy services and hashrate derivatives. Its clients include miners such as Canaan and TeraWulf.
The company’s hardware desk has traded more than $1 billion in bitcoin mining machines. Its energy business services more than 75 megawatts of load in the ERCOT and SPP power markets.
In September, Luxor launched Luxor AI. The segment brings its hardware, software, energy, data and trading services into the AI and high-performance computing market.
In August, the company also launched an AI Hardware Price Index to track GPU node prices. It runs on Luxor’s Hashrate Index data platform.
CEO Nick Hansen said the same miners, power sites and capital that served digital mining are now powering AI. Luxor’s compute trading desk offers options, forwards and backstops tied to compute rental indexes. The contracts are settled in cash.
Vera said larger AI startups that raise bigger rounds are potential customers for Luxor’s services. He said the company serves more than 3,000 clients. Its headcount has grown from 11 in 2021 to 106 now, mainly funded by cash the business generated.
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