Luxor’s $16M raise puts $BTC mining muscle to work on AI

Luxor Technology raised $16 million in a strategic funding round led by CMT Digital, the venture arm of Chicago’s CMT Group, to expand its AI computing business. The Seattle-based company said the round combined primary and secondary capital and included mining-hardware makers Canaan and MicroBT, along with Halo, Steelhead and angel investors. Luxor described the backers as operating partners already embedded across the compute supply chain, including hardware, capital and power.

The proceeds will scale Luxor’s agentic cloud platform, provide working capital for its AI hardware business, expand its compute-derivatives trading capabilities and fund engineering and go-to-market hires. Luxor launched Luxor AI in September, extending its energy, hardware, software and trading stack built for Bitcoin mining into the AI and high-performance computing market. The company also sources GPUs and AI servers as global chip supply chains become “increasingly hard to navigate.”

Luxor said its hardware desk has traded $1 billion of mining ASICs, its energy arm services more than 75 megawatts of load across two U.S. grid regions, and its cloud platform had processed 1.8 million workloads so far this year as of September. The company serves Bitcoin miners such as Canaan and TeraWulf.

Luxor’s over-the-counter desk offers cash-settled options, forwards and backstops on compute-rental indexes, allowing AI computing power to be priced and hedged like a financial instrument. “Compute markets are converging: the same miners, power sites and capital that served digital mining are now powering AI,” said Nick Hansen, Luxor’s CEO and co-founder.

In June 2021, Luxor raised $5 million in a Series A funding round led by institutional Bitcoin technology and financial services firm NYDIG to fund the expansion of its North American $BTC mining services. Earlier seed-round investors included Celsius, Valour and Bitnomial, according to startup data tracker Tracxn.