Seattle-based mining software company Luxor has closed a Series A funding round led by institutional Bitcoin technology and financial services firm NYDIG.
Luxor announced the $5 million funding round on June 9, adding that NYDIG will collaborate with Luxor on a number of mining-related ventures and hashrate-based products.
Also participating in the equity round were mining companies Blockware Solutions, Celsius Network, DPO, Navier, and Supplybit. A number of angel investors along with Bitnomial, Hodl Capital, and Routemaster also participated.
According to the announcement, Luxor and NYDIG aim to help grow the North American mining industry with Luxor working on making hashrate a commodity, and NYDIG providing Bitcoin investment and technology solutions to insurers, banks, corporations, and institutions.
Luxor provides a software solution called Switch that employs a profit-switching algorithm designed to maximize earnings by switching between blockchains and venues to capitalize on the best block rewards. Nick Hansen, CEO, and co-founder of Luxor, commented:
“Luxor is uniquely positioned to capitalize on industry tailwinds that see hashrate continuing to migrate to North America.”
The announcement comes as China continues to crack down on crypto mining operations and U.S. lawmakers grow increasingly agitated over Bitcoin payments for ransomware attacks.
As reported by Cointelegraph, China’s dominance over hashrate is dwindling while America's is increasing as mining operations can tap into an abundance of cheap renewable energy in states such as Texas.
Robert Gutmann, co-founder and CEO of NYDIG, stated:
“We're confident in Nick's vision and his team's ability to drive and expedite the hashrate migration to North America, and the development of instruments that can strengthen the Bitcoin ecosystem.”
On June 4, Cointelegraph reported that a number of Chinese mining operations were closing up shop on the mainland and seeking international expansion.