Luxor raises $16M from CMT Digital as Bitcoin miners and AI firms converge

Bitcoin mining firm turns to AI compute

Luxor Technology has raised $16 million in a funding round led by CMT Digital. The company, which calls itself a full-stack compute business, said the money will help it grow its AI infrastructure services and expand the hardware it sources for the artificial intelligence market.

The raise comes as the two biggest users of computing power — Bitcoin miners and AI firms — begin to share the same resources. Luxor says mining companies, power sites and the capital behind them are being used to power both Bitcoin mining and AI workloads.

Who backed the round

In addition to CMT Digital, the round included Canaan, MicroBT, Halo, Steelhead, and a group of angel investors. The announcement was made on Tuesday.

Key numbers

• $16 million raised in the strategic round


• Round led by CMT Digital


• Participants: Canaan, MicroBT, Halo, Steelhead and angel investors


• Luxor previously raised $5 million in a Series A in June 2021, led by NYDIG


• Luxor AI, the company's new AI segment, launched in September

What Luxor plans to do with the money

Luxor says it will use the funds to scale its agentic cloud platform, grow its AI hardware business, expand what it calls compute derivatives trading, and hire more people. Its AI business already sells GPUs and AI servers to companies that need computing power for AI applications.

The company also points to a shortage of chips as a reason it can add value. Luxor says global chip supply chains are becoming increasingly difficult to navigate, and it intends to use its network to help source hardware for customers.

A shift from mining into AI

Luxor's move into AI is an expansion of its work with Bitcoin miners. The company serves mining customers such as Canaan and TeraWulf and has built a hardware, software and compute trading system for that market. In September, it launched a new segment called Luxor AI that applies the same stack to the AI and high-performance computing market.

At the time, Nick Hansen, co-founder and chief executive, said: "Compute markets are converging: the same miners, power sites and capital that served digital mining are now powering AI."

Earlier funding

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

What is confirmed

• Luxor Technology raised $16 million in a strategic funding round.


• CMT Digital led the round; Canaan, MicroBT, Halo, Steelhead and angel investors also participated.


• The company plans to use the funds to scale its AI cloud platform and hardware business, expand compute derivatives trading, and hire staff.


• Luxor serves mining customers including Canaan and TeraWulf.


• Luxor AI launched in September.


• A $5 million Series A was raised in June 2021, led by NYDIG.

Why this matters

The round highlights a growing overlap between Bitcoin mining and AI. Both industries need large amounts of computing power and reliable access to GPUs and data center space. Companies that already run large mining operations have power sites and relationships with hardware suppliers, which can help them serve AI customers as chip supply remains tight.

What is still unclear

• The article does not disclose what stake CMT Digital or the other investors received for their money.


• Details of the compute derivatives trading business are not explained in the source.


• No specific timeline or growth targets were provided.

Sources

• Cointelegraph