Luxor Technology Corporation has entered into a landmark $131.4 million agreement with bitcoin mining hardware manufacturer Microbt, covering both firm orders and purchase options. The deal underscores the growing trend of vertical integration and localization in the cryptocurrency mining industry.
Deal Structure: $93.2M Firm Order Plus $38.2M Option
Under the terms announced on December 11, 2024, Luxor has committed to purchasing Microbt's Whatsminer application-specific integrated circuit (ASIC) mining rigs valued at $93.2 million, with an option to acquire an additional $38.2 million worth of units. The ASIC models will feature a mix of immersion, air-cooled, and hydro-cooled systems, each optimized for different operational environments. Microbt CEO Zuoxing Yang expressed enthusiasm, stating that the partnership reinforces the company's dedication to delivering high-performance mining systems and promoting sustainable practices in the United States.
US Manufacturing Push: Microbt vs. Bitmain
A key aspect of the agreement is its support for Microbt's expansion of domestic assembly and manufacturing capabilities in the US. Microbt has already started assembling mining equipment stateside, competing directly with Bitmain, which launched its own US-based production line. This geographical shift is driven by regulatory considerations and supply chain resilience. Luxor CEO Nick Hansen noted, 'We are focused on working with clients to execute buy and sell activities in large volumes at competitive prices by evaluating and taking principal positions in various brands of ASICs.'
Luxor's ASIC Trading Desk: Daily Volume Reaches $1M
Luxor launched its ASIC Trading Desk earlier in 2024, which engages in buying and selling mining hardware for institutional miners and investors. According to the company, the platform has traded approximately $1 million in hardware daily throughout the year. This deal with Microbt significantly strengthens Luxor's inventory and ability to serve large-scale clients. Hansen added that the firm aims to provide competitive pricing by taking principal positions across different ASIC brands.
New Hardware Launch: Whatsminer M60S++ Series
Microbt recently unveiled its latest additions to the Whatsminer family at Bitcoin MENA in Abu Dhabi: the air-cooled M60S++, hydro-cooled M63S++, and immersion-cooled M66S++. These models feature improved hash rates and energy efficiency, critical for miners navigating the post-halving landscape. Luxor's large-scale order likely includes these new models, enabling clients to upgrade their fleets.
The $131.4 million deal highlights three converging trends in bitcoin mining: manufacturing localization, rapid technology iteration, and the emergence of specialized trading desks. As network hashrate continues to climb after the 2024 halving, partnerships like this one between Luxor and Microbt are essential for maintaining operational efficiency and profitability across the industry.