Bitcoin mining infrastructure firm Luxor Technology has raised $16 million in a strategic round to accelerate its push into artificial intelligence computing. The Seattle-based company said the round was led by CMT Digital, the venture arm of Chicago's CMT Group, with participation from mining-hardware manufacturers Canaan and MicroBT, as well as Halo, Steelhead, and angel investors.
The financing combined primary and secondary capital. Luxor COO Ethan Vera told The Block that the primary component was preferred equity used to drive growth, while the secondary portion was a mix of preferred and common equity intended to bring new strategic investors into the round. Luxor began raising the capital in August and closed that part of the round in October. Valuation terms and board observer details were not disclosed.
The raise follows the September launch of Luxor AI, which extends the company's existing Bitcoin mining stack—spanning energy, hardware, software, and trading—into AI and high-performance computing. Luxor said its hardware desk has traded more than $1 billion in mining ASICs, its energy arm services more than 75 megawatts of load across ERCOT and Southwest Power Pool markets, and its cloud platform processed 1.8 million workloads this year as of September.
Funds will be used to scale the cloud platform, provide working capital for AI hardware sourcing, grow compute derivatives trading and market making, and hire engineering, product, and sales staff. Luxor's over-the-counter desk offers cash-settled options, forwards, and backstops based on compute-rental indexes, allowing AI companies to hedge, finance, and speculate on AI compute. In August, Luxor also launched an AI Hardware Price Index through its Hashrate Index data platform to track GPU node prices.
“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. Vera noted the company has grown from 11 employees at its last priced equity round in 2021 to 106 today, mostly using cash generated by the business. Luxor plans to hire about 12 more people before the end of the year.
