Ben Strack

Bitcoin mining services firm Luxor Technology has introduced a business for crypto miners in need of better hardware transportation and management ahead of the bitcoin halving.



The company’s new division, called Luxor Logistics, looks to answer demand from miners for “a crypto-native, experienced international logistics provider,” according to Lauren Lin, the company’s director of business development.&nbsp;&nbsp;



It is set to offer international and US shipping via air and sea freight and trucking, as well as customs clearance, insurance advisory and warehousing solutions.



The Monday launch comes just months before per-block rewards for bitcoin mining are set to be cut in half — from 6.25 bitcoin (<a href="https://blockworks.co/price/btc">BTC</a>) to 3.125 BTC per block. Such an event occurs roughly every four years, and the upcoming <a href="https://blockworks.co/tag/bitcoin-halving">halving</a> is set for April 2024.



It is expected to put financial pressure on certain companies in the sector, industry watchers and executives have said.&nbsp;



Read more: <a href="https://blockworks.co/news/anniversary-of-2016-btc-halving#">At anniversary of 2016 BTC halving, a look to the next one</a>



“With the bitcoin halving coming soon, every hour counts,” Lin told Blockworks in an email. “So miners are increasingly looking for efficient logistics solutions to improve their lead times so that they can plug in hardware as quickly as possible.”&nbsp;



Miners have historically used general freight forwarders or specialized crypto logistics companies with little or no crypto mining expertise, Lin added.&nbsp;



“We&#8217;re miners ourselves and have spent extensive time with other miners on deployments, so we know exactly how to test equipment, package and arrange shipments for maximum efficiency,” she said. “The little improvement accrues into big gains for efficiency and deployment time.”&nbsp;



Luxor competitor Foundry launched a logistics arm in July 2022 that sought to offer an “all-in-one solution for mining hardware deliveries,” it said in a news release at the time.



Lin noted that users of the Luxor logistics services are set to include users of the company’s trading desk for application-specific integrated circuits (<a href="https://blockworks.co/tag/asics">ASICs</a>). It has so far provided logistics services to roughly 700 companies through that arm — transporting 112,000 bitcoin mining ASICs to 30 countries.



Users are also set to include “miners operating or expanding into different countries and regions, and operators who needed advisory and assistance for easing logistical hassles,” Lin said.&nbsp;



The executive did not immediately disclose specific companies set to use the services.



International expansion has been a tactic for crypto mining giant Marathon Digital, for example, as the company has prioritized <a href="https://blockworks.co/news/marathon-ceo-diversity-in-site-mix-is-key-to-future-growth">reducing its costs by finding new sites</a> and exploring less expensive methods of mining.



Another crypto mining giant, Riot Platforms, sought to <a href="https://blockworks.co/news/riot-microbt-bitcoin-us">de-risk logistics via a deal with MicroBT</a> designed to on-shore its supply chain.



Spokespeople for Marathon and Riot Platforms did not return requests for comment about Luxor’s new service.



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ASICs

Luxor aims to ease crypto miner logistics as halving looms

Morgan Chittum

<div id="highlights-block_60c3b55297ddd" class="highlights">
 <ul>
 <li>NYDIG will collaborate with Luxor on a number of mining-related ventures and hashrate-based products </li>
 <li>Luxor has plans in store to supercharge returns for bitcoin miners</li>
 </ul>
 
</div>



Luxor Technologies, a bitcoin mining firm, raised $5 million in a Series A funding round, the company announced in a press <a href="https://www.luxor.tech/newsroom/luxor-series-a" target="_blank" rel="noreferrer noopener">release</a> this week.



“Luxor has been running for quite a while. [However], this is going to give us the catalyst we need to start sprinting,” CEO and founder Nick Hansen said in an interview with Blockworks.



NYDIG, who led the funding round, will collaborate with Luxor on a number of <a href="https://cms.blockworks.co/zero-carbon-footprint-mining-new-growth-area-for-investors/">mining-related ventures</a> and hashrate-based products, according to the announcement.



Hansen said that NYDIG, the digital asset subsidiary of Stone Ridge Asset Management, and Luxor have big plans in store to supercharge returns for bitcoin miners as well.&nbsp;



“At Luxor, we view hashrate as an asset class as itself, meaning that it has some value that changes overtime and we would like to be able to give miners the ability to hedge that asset,” Hansen said.



Some noteworthy investors in the Series A round include: Bitnomial, Hodl Capital and Routemaster.&nbsp;



“We’re pleased to lead this Series A funding round and are thrilled to partner with Luxor to develop first-of-their-kind products and competencies for North American miners,” said NYDIG CEO and co-founder Robert Gutmann in the <a href="https://www.luxor.tech/newsroom/luxor-series-a" target="_blank" rel="noreferrer noopener">release.</a> 



Luxor has initially raised $725,000 in a pre-seed round in February.