Bitcoin Mining Machines Now Available on Luxor's Marketplace

Crypto-mining services firm Luxor Technologies said Wednesday it has launched a trading platform for Bitcoin mining machines. 

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It will facilitate both transparency and liquidity in the secondary market by allowing users to create "request-for-quotes" and negotiate directly on prices. 

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Several troubled miners are selling equipment on the platform and crypto lenders are reporting a surge in machine-backed loan defaults. As the value of mining rigs are highly correlated with Bitcoin prices, the market for mining rigs - specialized computers that validate blockchain transactions - tends to be volatile.

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Luxor Operations Manager Lauren Lin said Luxor RFQ was created to provide a unified marketplace. The mining hardware market was fragmented and opaque before, with buyers and sellers relying on a patchwork of venues. It is now possible for them to view all offers, listings, and settlement prices in one place."

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Some mining machines have lost as much as 80% of their value since 2021 due to the collapse of crypto prices. The slide, however, has provided some opportunities. Companies investing in Bitcoin mining hardware, such as Jihan Wu's crypto-miner Bitdeer, plan to raise hundreds of millions of dollars. A bankruptcy auction will also take place for the mining business of BlockFi Inc.