Luxor’s Aaron Foster Discusses Rising Bitcoin Mining Difficulty
Tom Carreras | Edited by Benjamin Schiller on April 12, 2025, 7:52 PM
Luxor Technology aims to simplify the process of Bitcoin mining. Therefore, the company has developed a number of products (mining pools, hashrate derivatives, data analytics, ASIC brokerage) to support both large and small miners in their activities.
Aaron Forster, Director of Business Development, joined the team in October 2021 and has seen the team grow from 15 to 85 people in three and a half years.
Forster spent a decade in the Canadian energy sector before switching to Bitcoin mining, which is one of the reasons he will be presenting a paper on the future of mining in Canada and the U.S. at Consensus’ BTC & Mining Summit this year.
Stay tuned for full coverage of the Consensus 2025 conference in Toronto, May 14-16.
Ahead of the event, Forster shared with CoinDesk his thoughts on the transition of Bitcoin miners to artificial intelligence, the increasing complexity of the mining industry, and how Luxor’s products help miners hedge various risks.
This interview has been condensed and edited for clarity.
CoinDesk: Mining pools allow miners to pool their computing power to increase their chances of winning Bitcoin block rewards. Can you explain how Luxor’s mining pools work?
Aaron Forster: Mining pools are essentially aggregators that reduce the variance of solo mining. If you look at solo mining, it’s like a lottery: you can turn on your machines and get a block reward tomorrow or in 100 years. But you’re still paying for electricity during that time. At a small scale, that’s not as critical because you’re scaling your operation and building a business around it.
The most common type of mining pool is PPLNS, which stands for Pay-Per-Last-N-Shares. This means that the miner does not receive a reward until the pool finds a block. This also involves luck variance, so it is similar to the situation with an individual miner. However, this creates
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