Luxor raises $16M from CMT Digital amid AI-Bitcoin miner convergence

Abstract:Luxor raised $16 million from CMT Digital and others to fund the expansion of its AI hardware business and compute derivatives trading capabilities.

Full-stack compute company Luxor Technology raised $16 million in a strategic round led by CMT Digital.

The investment round also saw participation from Canaan, MicroBT, Halo, Steelhead, and additional angel investors, according to a Tuesday announcement shared with Cointelegraph.

The company aims to use the proceeds to scale its agentic cloud platform, grow its AI hardware business, expand its compute derivatives trading capabilities and hire more staff.

Luxor serves Bitcoin miners such as Canaan and TeraWulf and has expanded its hardware business to source GPUs and AI servers for the AI computing market, as global chip supply chains become “increasingly hard to navigate.” The raise will help scale its existing AI infrastructure business and capitalize on the convergence of Bitcoin miners and AI firms through computing markets.

“Compute markets are converging: the same miners, power sites and capital that served digital mining are now powering AI,” said Luxors co-founder and CEO Nick Hansen.

In September, the company launched Luxor AI, a business segment that extends its hardware, software, and compute trading stack built for Bitcoin miners into the AI and high-performance computing market.

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.

Related: HOODs prediction markets to add $1.7B to revenue, exceed crypto by 2028: Bernstein

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