Share this article
Hut 8 Will Use Luxor's Software to Manage New Ethereum Miners
Ethereum is migrating to proof-of-stake, but miners still see profit in proof-of-work.
Updated Sep 14, 2021, 12:34 p.m. Published Mar 31, 2021, 3:01 p.m.
Public Canadian mining company Hut 8 is teaming up with Luxor to use the technology firm’s software to power its new fleet of Ethereum and altcoin mining machines.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The Canadian miner recently purchased $30 million worth of Nvidia’s crypto-focused graphics cards (GPUs) to mine ether and other cryptocurrencies. Hut 8’s Cryptocurrency Mining Processors (CMPs, as Nvidia has branded them), will utilize Luxor’s Switch software to flip between ether and other coins that use the SHA-256 hashing algorithm (same that’s used for bitcoin).
Read more: How Ethereum Mining Works
Hut 8 will host the hardware themselves but will rely on Luxor for software and hashrate management, per the agreement.
“Institutional miners are looking for profit-switching algorithms to access deeper hashrate liquidity and get best point-in-time execution for their hashrate. Leveraging multiple blockchains, venues and MEV opportunities, Luxor Switch can deliver top miners, such as Hut 8 with extra return for their hashrate,” Luxor CFO Ethan Vera told CoinDesk.
Ethereum mining: dead end or new beginning?
Ethereum’s DeFi summer of 2020 and NFT spring of 2021 have been boons for miners, as transaction fees on the network ballooned alongside token valuations.
Developers recently approved an Ethereum Improvement Proposal for activation this July which would burn ETH transaction fees, a change that has been met with celebration from ETH users and exasperation from miners.
Read more: Ethermine Adds Front-Running Software to Help Miners Offset EIP 1559 Revenue Losses
Even with some of their rewards capped by EIP 1559 and the Ethereum blockchain migrating to proof-of-stake, miners are still putting money into their Ethereum mining infrastructure. Companies like Hut 8 expect the investment will pay off in the time it takes Ethereum to make the upgrade, and that it will probably pay some more after that.
“Companies mining Ethereum are betting they will be able to get a return well ahead of a full switch,” Vera told CoinDesk.
Some miners believe that Ethereum 1.0, the current network that runs on proof-of-work, will last a few years still even after Ethereum 2.0’s launch, Vera continued.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
LUNC Surges Over 160% in a Week as Do Kwon Sentencing and Token Burns Draw Traders
The rally is driven by speculation that a final verdict could bring clarity to the project, as well as technical factors like token burns.
What to know:
- Terra Classic (LUNC) surged 74% to $0.0000072, up 160% in the past week, on exploding trading volume, ahead of Terraform Labs founder Do Kwon's sentencing on Dec. 11.
- The rally is driven by speculation that a final verdict could bring clarity to the project, as well as technical factors like token burns, with 849 million LUNC destroyed in the past week.
- The token's momentum is also fueled by Binance's pause on LUNC withdrawals ahead of the Terra Chain's v2.18 upgrade, which aims to improve network stability, despite the token remaining volatile.
Top Stories
