Luxor Technology, a company that builds software and services for bitcoin miners, has raised $16 million in a new funding round led by CMT Digital. The round was announced on Tuesday and detailed in an official announcement.

Mining hardware makers Canaan and MicroBT joined the round alongside Halo, Steelhead and several angel investors. It included both new primary funding for the company and sales of existing shares. The investor list carries strategic weight: Canaan is also a client of Luxor's mining business, tying one of the company's own hardware suppliers to its next phase of growth.

How the Funding Round Was Structured

Luxor Chief Operating Officer Ethan Vera told The Block that the newly raised capital took the form of preferred equity, while the secondary share sales were a mix of preferred and common equity. According to Vera, the share sales were designed to bring new strategic investors into the round.

Vera did not disclose the exact split between the two components, the company's valuation, or whether any investors received board seats, observer roles or advisory positions.

Luxor began raising capital in August and closed that portion of the round in October. Its last priced equity round came in 2021, when it raised $5 million in a Series A led by NYDIG. Prior to this deal, the company had raised $6.575 million across three rounds. Vera said the company deliberately waited to raise more capital until it had a clear use for the funds, and that its move into AI provided one.

Plans for the Proceeds

The funds will be used to scale Luxor's cloud platform and its AI hardware business, expand its compute derivatives trading operations, and grow headcount. The company expects to add roughly 12 employees across engineering, product, and sales and marketing by the end of the year.

Luxor's hardware business sources GPUs and AI servers for customers, a task that has grown more complex as global chip supply chains have become increasingly hard to navigate, according to the company. Its cloud platform offers sandboxes and runners for AI agents as well as AI code review tools. Luxor said the platform had run 1.8 million workloads this year as of September.

From Bitcoin Mining to AI

Luxor's bitcoin business spans a mining pool, software for managing mining machines, hardware trading, energy services and hashrate derivatives. Its clients include miners such as Canaan and TeraWulf. The company's hardware desk has traded more than $1 billion worth of bitcoin mining machines, while its energy business services more than 75 megawatts of load in the ERCOT and SPP power markets.

In September, Luxor launched Luxor AI, a segment that brings its hardware, software, energy, data and trading services into the AI and high-performance computing market. In August, the company also introduced an AI Hardware Price Index that tracks GPU node prices, running on Luxor's Hashrate Index data platform.

Chief Executive Officer Nick Hansen said the same miners, power sites and capital that served digital mining are now powering AI. His comments reflect a broader industry pattern in which bitcoin mining companies and their service providers have put power capacity, hardware logistics and trading expertise built for mining to work serving AI and high-performance computing customers. Luxor's compute trading desk offers options, forwards and backstops tied to compute rental indexes, with the contracts settled in cash.

Vera said larger AI startups that raise bigger funding rounds represent potential customers for Luxor's services. The company serves more than 3,000 clients, and its headcount has grown from 11 employees in 2021 to 106 today, funded mainly by cash the business generated. Near-term markers of how the AI push progresses include whether the roughly 12 planned hires are in place by year-end and how the cloud platform's workload count develops from the 1.8 million recorded through September.