Luxor Technology, a firm that built its business providing energy, hardware, software, and trading services to the Bitcoin mining industry, has raised $16 million to accelerate its push into the fast-growing market for AI computing power—the latest sign of crypto infrastructure companies pivoting toward artificial intelligence.

The Seattle-based company said the strategic funding round was led by CMT Digital, the venture arm of Chicago's CMT Group, with participation from mining-hardware makers Canaan and MicroBT, as well as Halo, Steelhead, and angel investors. The round combined primary and secondary capital—the latter a structure in which investors buy shares from existing holders rather than injecting new money directly into the company—and Luxor framed each backer as an operating partner already embedded in the compute supply chain it serves, spanning hardware, capital, and power.

The raise follows the September launch of Luxor AI, a dedicated business segment that extends the energy, hardware, software, and trading stack Luxor originally built for Bitcoin mining into the AI and high-performance computing market.

The company brings a sizable operating history to the effort. Its hardware desk has traded $1 billion worth of mining ASICs—the specialized chips that perform the computational work of Bitcoin mining—its energy arm services more than 75 megawatts of load across two U.S. grid regions, and its cloud platform had processed 1.8 million workloads so far this year as of September.

Luxor said it will use the new funds to scale that cloud platform, provide working capital for its AI hardware business, grow its compute-derivatives trading operation, and make engineering and go-to-market hires.

One notable piece of the business is its over-the-counter desk, which already offers cash-settled options, forwards, and backstops on compute-rental indexes—effectively turning AI computing power into an asset that can be priced and hedged like a financial instrument. The approach mirrors commodities markets such as oil or electricity, where derivatives have long let producers and buyers manage price risk—here applied to computing capacity itself.

"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.

The move fits a broader stampede across the Bitcoin mining industry toward AI. Bitcoin miners have increasingly repurposed their power assets and infrastructure for artificial intelligence, with some signing billion-dollar deals with hyperscalers—the largest cloud and data-center operators—and others selling Bitcoin from their holdings to fund the shift. Analysts at VanEck and Bernstein have cast miners as unlikely power brokers in the AI race, given their rare access to the large amounts of electricity and the sites that data centers need. Luxor's raise also shows the convergence reaching beyond the miners themselves: even the service firms that supply the mining industry are redirecting their energy, hardware, and trading expertise toward AI.