Luxor raises $16M in CMT Digital-led round to scale its AI compute business
In brief
- Luxor Technology raised $16 million in a strategic round led by CMT Digital.
- Canaan, MicroBT, Halo, Steelhead and angel investors also joined the round.
- Proceeds fund Luxor's agentic cloud, AI hardware, compute derivatives trading and hiring.
- Luxor CEO Nick Hansen said capital and power sites that served mining now power AI.
Where the $16 million goes
Luxor said it plans 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. It's a list that leans heavily on AI.
The hardware piece isn't new. Luxor had already expanded its hardware business to source GPUs and AI servers for the AI computing market, as global chip supply chains became harder to navigate, Cointelegraph reported.
Canaan is on both sides of this one (it's a Luxor customer, and now it's also one of the round's backers).
Bitcoin miners, AI buyers
According to the company, the raise is meant to scale Luxor's AI infrastructure business and take advantage of the convergence of Bitcoin miners and AI firms through computing markets. Hansen didn't hedge on that point, according to Cointelegraph's report.
“Compute markets are converging: the same miners, power sites and capital that served digital mining are now powering AI,” said Luxor’s co-founder and CEO Nick Hansen.
This isn't a sudden pivot. In September, Luxor launched Luxor AI, a business segment that extends its hardware, software and compute trading stack for Bitcoin miners into the AI and high-performance computing market. The new round gives that segment more capital to work with.
From mining services to compute
Luxor's roots are firmly in Bitcoin mining. In June 2021, the company raised $5 million in a Series A round led by NYDIG to fund the expansion of its North American BTC mining services.
Prior seed investors included Celsius, Valour and Bitnomial, according to startup data tracker Tracxn.
The investor mix this time looks different. CMT Digital led, and two names tied to mining hardware and operations (Canaan and MicroBT) sat alongside Halo, Steelhead and a group of angels.
Frequently asked questions
What will Luxor do with the $16 million it raised?
Luxor said it plans 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. The company said the raise is meant to scale its existing AI infrastructure business.
Who invested in Luxor's $16 million round?
CMT Digital led the strategic round. Canaan, MicroBT, Halo, Steelhead and additional angel investors also took part, according to a Tuesday announcement shared with Cointelegraph.
