NYDIG-backed mining firm Luxor launches new service for buying, selling hardware

Luxor, a Washington-based bitcoin mining company, has launched a new service for buying and selling Bitcoin mining machines. Through their new trading desk, the company will purchase and sell specialized Bitcoin mining hardware on behalf of the Luxor team, miners, and investors.

"After moving tens of thousands of machines and serving miners across a few continents, we established a streamlined process for procuring equipment,” said Lauren Lin, operations manager at Luxor, in a statement.

An application-specific integrated circuit or “ASIC” is a chip customized for a specific purpose. An ASIC miner is a piece of hardware that uses these specialized chips for the purpose of mining digital currency. Bitcoin mining machine prices are volatile, based on macro-economic conditions and market cycles. The Luxor ASIC Trading Desk will trade in these opaque markets, taking principal positions to help miners gain access to rigs – hardware elements that have been set up to perform crypto mining – at fair market prices.

Tuesday's launch comes months after the company raised $5 million in a Series A funding round led by financial services firm NYDIG. Looking ahead, Luxor is eyeing additional products and services related to mining hardware and the production of hashrate, including derivatives.

“For 2022, we're planning to launch a hashrate derivatives and trading product,” said Colin Harper, head of content and research, to The Block. “In essence, it will be a marketplace where miners and investors can purchase hashrate and/or derivatives tied to Bitcoin's hashrate.”