Luxor Launches Hosting Marketplace for Bitcoin Miners Amid Build-Out Delays

The marketplace will offer hosting clients in the U.S. and Canada, with miners able to have as little as one mining rig hosted by some providers.

AccessTimeIconJun 28, 2022 at 2:47 p.m. UTC
Updated Jun 28, 2022 at 3:28 p.m. UTC

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

Luxor Technology, the full-stack bitcoin (BTC) mining software and services provider, is launching a marketplace for miners where customers will be able to purchase hosting services for their mining rigs.

Miners will be able to shop for hosting services when they buy bitcoin mining computers through Luxor’s brokerage service that was launched earlier this year. Luxor will essentially play the role of a broker, matching miners that need their machines plugged into a hosting provider. Luxor said that it has done over $100 million in trading through its mining rig brokerage service.

“Luxor’s hosting marketplace enables miners to choose hosting providers that meet their unique operational and geographical requirements,” Luxor Director of Business Development Aaron Foster said in a statement. “Rather than a one-size-fits-all approach, Luxor aims to provide a white glove service that removes the uncertainty around hosting decisions,” he added.

In recent months, infrastructure and power supply-related delays, as well as lack of capital, have caused bottlenecks for miners in expanding their operations, with more miners than places to provide power.

"There have been widespread delays in infrastructure build outs due to supply chain constraints, operational complexity and power delays,” Lauren Lin, Luxor’s operations manager, told CoinDesk. “These problems have led many investors such as family offices, hedge funds, and high-net worth individuals to look at hosting options with established miners to get up and running.”

Hosting is a service that data centers provide to crypto miners in which customers can store their ASICs and mine their preferred digital assets for a fee, without having to build the accompanying infrastructure themselves.

“Bitcoin mining hosting can provide miners with more favorable power rates than they can get at home,” according to Luxor’s statement. “Luxor’s hosting partners offer a range of rates and revenue/profit sharing arrangements, as well as GPU and ASIC hosting,” the statement added.

The new marketplace will have hosting clients in the U.S. and Canada and miners will be able to have as little as one mining rig hosted by some providers, according to Luxor.

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Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

CoinDesk - Unknown

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets