We are excited to announce the close of a $725,000 pre-seed fundraising round with participation from a mix of strategics and angel investors. With the funds raised in this round, we will continue to build out our development team and products that have gained traction in the market.
We are proud to be backed by Argo Blockchain (LON: ARB), Routemaster (NEO: DEFI), Celsius Network, Bitnomial, Thomas Pacchia, Arben Kane, Olivier Roussy Newton, Wouter Witvoet, and Jamie McAvity.
The participation of Argo Blockchain is strong validation for our proprietary technologies around hashrate liquidation including a best-price execution engine. We launched Luxor Switch for Equihash in 2020 and Argo began using it early on. Over the course of the year, Switch produced outsized returns for our miners. This technology is designed to maximize mining revenue by re-thinking hashrate as an ephemeral asset with a point-in-time valuation as opposed to an abstract concept. In 2021, we plan to bring this technology to SHA-256 and expand our Hashrate Under Management (HUM) in the Bitcoin mining arena.
Mining revenue is volatile, leaving miners completely exposed to cycles of price and hashrate. Hashrate derivatives are needed for miners to be able to hedge a portion of their future revenue much like other commodity producers. We are committed to building robust instruments for North American miners at the same time as creating attractive derivatives for traders to engage with. Having the Bitnomial team in our corner is paving the path for us to create these types of products for miners. Their expertise in the US derivatives space, licenses, and systems are incredibly valuable to Luxor.
Joining forces with Celsius and Routemaster’s ecosystem of products will accelerate our growth in the Ethereum mining space and build next-generation MEV products to increase revenue for our miners. We believe the protocols built on ETH will continue to develop and the fee markets will be favorable for miners. We are excited to enter this arena delivering more profitable liquidation engines for the mining community.
Having a number of experienced angel investors such as Thomas, Arben, Olivier, Wouter, and Jamie will help us navigate the startup lifecycle and execute more effectively.
With the new capital, we are going to make several key engineering hires to strengthen our development efforts of the hashrate marketplace. We have already brought on Tomás, Leandro, Akshita, Lauren, Mon, Daniel C, and Daniel P to join my co-founders Eddie, Ethan, and Guzman in building a premier hashrate business. Our growth will accelerate under the perfect storm of hashrate development in North America, and the institutionalization of mining. We look forward to building with our new and old partners.
Happy Hashing, Nick Hansen CEO, Luxor Technology