Nvidia-backed startup Starcloud has announced plans to begin mining Bitcoin in space later this year. The company aims to achieve this milestone after launching its second spacecraft, potentially becoming the first organization to mine the cryptocurrency beyond Earth.
Starcloud CEO Philip Johnston revealed the plan during an interview with HyperChange and later confirmed it in a post on X. According to Johnston, Bitcoin mining is one of the most practical uses for computing infrastructure in space because of its hardware efficiency and energy requirements.
The company is building orbital data centers powered primarily by solar energy. These data centers are designed to meet the rapidly growing computing demand driven by artificial intelligence while also supporting other high-performance workloads like cryptocurrency mining.
Why Bitcoin Mining Could Be Cheaper in Space
Johnston explained that Bitcoin mining hardware, known as application-specific integrated circuits (ASICs), is far more cost-efficient than graphics processing units (GPUs) when measured by energy usage.
He noted that GPUs can be about 30 times more expensive per kilowatt than ASIC miners. For example, a 1-kilowatt Nvidia B200 GPU can cost around $30,000, while a 1-kilowatt ASIC miner may cost roughly $1,000. This cost difference makes ASIC-based Bitcoin mining particularly attractive for space-based computing environments.
Johnston also pointed out that Bitcoin mining currently consumes about 20 gigawatts of power worldwide. Because of the massive energy demand, he believes the industry could eventually move a significant portion of its operations into space, where solar power can be harvested continuously.
Starcloud was founded in early 2024 with the goal of building large-scale data centers in orbit. In November, the company successfully launched a satellite equipped with an NVIDIA H100 GPU, marking the first time such a powerful chip has operated in space. The startup plans to expand its orbital infrastructure significantly, potentially operating tens of thousands of satellites.
The Future of Bitcoin Beyond Earth
The idea of cryptocurrency operating beyond Earth has also sparked interest among other technology entrepreneurs. Last year, developers Jose E. Puente and Carlos Puente explored the concept of sending Bitcoin transactions between planets.
According to their proposal, Bitcoin could theoretically be transmitted to Mars in about three minutes using optical communication links through systems such as satellite relays or deep-space communication networks. The process would involve routing transactions through satellites, antennas, or even relay stations near the Moon before reaching Mars.
However, the developers noted that mining Bitcoin on Mars would likely be impractical due to the significant communication delay between Earth and the Red Planet.
Meanwhile, Bitcoin mining profitability has faced pressure in recent months. The price of Bitcoin has fallen sharply from its peak, reducing profit margins for miners. Despite this, mining difficulty has also declined slightly, offering some temporary relief to the industry.
