Luxor Technology, a full-stack compute company, has raised $16 million in a strategic funding round led by CMT Digital.

Canaan, MicroBT, Halo, Steelhead and a group of angel investors also joined the round, according to a Tuesday announcement shared with Cointelegraph.

Luxor plans to deploy the proceeds to scale its agentic cloud platform, grow its AI hardware business, expand its compute derivatives trading capabilities and hire additional staff.

The company provides services to Bitcoin miners including Canaan and TeraWulf — making Canaan both a client and an investor in the new round — and has broadened its hardware operations to procure GPUs and AI servers for the AI computing market, as global chip supply chains become “increasingly hard to navigate.” The new capital will support the expansion of its existing AI infrastructure business and position the firm to capitalize on the convergence of Bitcoin miners and AI companies through compute markets.

“Compute markets are converging: the same miners, power sites and capital that served digital mining are now powering AI,” said Luxor co-founder and CEO Nick Hansen.

That convergence is already operational at Luxor. In September, the company launched Luxor AI, a business segment that extends the hardware, software and compute trading stack it built for Bitcoin miners into the AI and high-performance computing market. How the new capital accelerates that segment — alongside the agentic cloud platform and the compute derivatives trading desk — will show how the company's mining-era infrastructure translates into the AI market.

The raise builds on earlier backing. In June 2021, Luxor secured $5 million in a Series A funding round led by NYDIG, an institutional Bitcoin technology and financial services firm, to fund the expansion of its North American BTC mining services. Its earlier seed round investors included Celsius, Valour and Bitnomial, according to startup data tracker Tracxn.