From Decrypt · By Decrypt Staff
In brief
Luxor Technology raised $16 million in a strategic round led by CMT Digital, with participation from Canaan, MicroBT, Halo, Steelhead and angels, to scale its push into AI computing power.
The raise follows the September launch of Luxor AI, which extends Luxor’s Bitcoin-mining stack—energy, hardware, software and trading—into AI.
Funds will scale its cloud platform, AI hardware business and compute-derivatives desk, fitting a broader miner-to-AI pivot.
Luxor Technology, a company that built its business around Bitcoin mining, has raised $16 million to expand into the fast-growing market for AI computing power, the latest sign of crypto infrastructure firms pivoting toward artificial intelligence.
The Seattle-based company said the strategic round was led by CMT Digital, the venture arm of Chicago’s CMT Group, with participation from mining-hardware makers Canaan and MicroBT, as well as Halo, Steelhead, and angel investors.
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The round combined primary and secondary capital, and Luxor framed each backer as an operating partner already embedded in the compute supply chain it serves, across hardware, capital, and power.
The raise follows the September launch of Luxor AI, a segment that extends the energy, hardware, software and trading stack Luxor built for Bitcoin mining into the AI and high-performance computing market. The company brings a sizable operating history to the effort: 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.
BitcoinBTC · USD$80,120−2.47%Oct 20Oct 22Oct 24Oct 25Oct 27$84.8k$83.1k$81.3k$79.6k24h HighHigh$80,68024h LowLow$79,416VolVol$1.1B→Buy Bitcoin with USDTPowered by JupiterPrice data by CoinGeckoCoinGeckoMore Bitcoin news and projections →Luxor said it will use the funds to scale that cloud platform, provide working capital for its AI hardware business, grow its compute-derivatives trading, and make engineering and go-to-market hires.
A notable piece is its over-the-counter desk, which already offers cash-settled options, forwards and backstops on compute-rental indexes, turning AI computing power into something that can 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.
The move fits a broader Bitcoin mining industry stampede towards AI.
Bitcoin miners have increasingly repurposed their power and infrastructure for AI, with some signing billion-dollar hyperscaler deals and others selling Bitcoin to fund the shift. Analysts at VanEck and Bernstein have cast miners as unlikely power brokers in the AI race, given their rare access to the electricity and sites that data centers need.