Crypto mining firm Luxor Technologies is enlisting institutional bitcoin shop NYDIG as an investor and partner.
Announced Wednesday, Luxor has closed a $5 million Series A funding round. In addition to leading the round, NYDIG will work with Luxor on “a number of mining-related ventures and hashrate-based products,” Luxor said in a press statement.
The investment comes as authorities in China crack down on bitcoin mining in the country and environmental concerns over proof-of-work blockchains fuel regulatory efforts in the U.S.
“Luxor is uniquely positioned to capitalize on industry tailwinds that see hashrate continuing to migrate to North America,” said Luxor CEO Nick Hansen.
Said NYDIG CEO Robert Gutmann: “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.”
Luxor had previously raised a $725,000 pre-seed round from mining firm Argo Blockchain, crypto lender Celsius Network, derivatives exchange Bitnomial and others.
NYDIG acquired Arctos Capital, a commercial lender focused on the bitcoin mining space, in April. The Luxor investment appears to be NYDIG’s first in a crypto mining firm.
An email to NYDIG was not returned by press time.