Bitcoin mining services firm Luxor Technologies is starting a new business to ease hardware shipping challenges miners face when buying mining machines and expanding operations globally.
The new unit, Luxor Logistics, will focus heavily on streamlining complex customs regulations in different regions by customizing transportation and delivery services, lowering the time required for shipping mining rigs for miners. "With the variety of import/export regulatory demands across different regions, Luxor positioned itself as a knowledgeable and valuable partner, helping miners to navigate the complex landscape of customs and documentation," Lauren Lin, Luxor's director of business development, told CoinDesk in a statement.
The formation of the new venture - an extension of Luxor's mining machine trading business - comes as lowering the logistical challenges is critical for miners to stay competitive in the current market. Miners need to be operational with the most efficient machines as quickly as possible to remain profitable ahead of next year's bitcoin halving - which will cut mining rewards by half. Combined with subdued bitcoin price, record high hashrate of the network and regulatory scrutiny, geographical diversification has also become crucial for miners.
"The service's expertise in navigating diverse global shipping challenges positions miners to swiftly adapt to changing market conditions and expand into different countries, maximizing their efficiency and competitiveness during this critical period," Lin said.
The new business, however, is not the first of its kind. Last year, digital-asset mining and staking firm Foundry also started a similar service to make the delivery of bitcoin-mining computers more efficient. Foundry is a subsidiary of Digital Currency Group (DCG), the parent company of CoinDesk.
Luxor aims to set itself apart from the competition by emphasizing on its expertise of global shipping, using the U.S. as its home base. The firm said it has already completed shipping over $245 million worth of equipment to more than 30 countries.
"This extensive experience not only allows Luxor to secure competitive shipping rates but also positions the company to offer its wealth of industry knowledge and expertise to clients so that they can benefit from a seamless integration of global shipping solutions with preferential rates under Luxor ASIC Trading Desk," according to Lin.
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