Bitcoin mining company Luxor is expanding its services to offer a marketplace for buying and selling Bitcoin miners, as well as a hashrate derivative and trading product.
Luxor Technology Corporation revealed its 2022 plans Tuesday via a press release. The company looks to expand beyond its current offerings by utilizing its expertise with shipping and procuring ASIC mining devices.
Operations manager Lauren Lin, discussed the move, explaining:
"After moving tens of thousands of machines and serving miners across a few continents, we established a streamlined process for procuring equipment.”
The initial launch of the mining machine market has already occurred, with additional features to be added in the future.
The new service is an ASIC trading desk, where Luxor can purchase and sell mining equipment for itself, investors, and other mining companies.
ASIC Miners are highly specialised and effective at doing one thing; producing hashes. This has made them the standard piece of equipment with which to mine bitcoin, ending the pre-ASIC era of mining bitcoin with CPUs and GPUs.
Luxor has voiced its opinion on the mining gear market, describing it as volatile due to ever-changing pricing and overall inefficiencies.
Due to the many challenges buyers and sellers face in the current market, Luxor has decided to launch this service to create a more efficient, cost-effective, and transparent solution for all parties involved.
The focus will be on providing the hardware at fair market prices to interested parties.
Luxor already offers a laundry list of different services including a bitcoin mining pool, a profit-switching tool, a hashrate index platform, and a data analytics solution.
The company is looking to expand this list of products and services in 2022 with a trading product and a hashrate derivative.
Luxor’s head of content and research, Colin Harper, describes the service as “a marketplace where miners and investors can purchase hashrate and/or derivatives tied to Bitcoin's hashrate.”
As more companies continue to heavily invest in mining equipment, the demand for mining machines has never been higher. It has also revealed the many issues plaguing ASIC machine manufacturers including limited supply of chips used to manufacture the machines.
Bitcoin’s mining difficulty continues to rise which may mean a continued influx of mining machine orders as companies compete with each other by boosting their hashrates.