Nvidia-backed Starcloud to launch Bitcoin mining in space this year

Starcloud, an orbital data center startup backed by Nvidia, plans to begin mining Bitcoin from space later this year once its second spacecraft reaches orbit. The company is seeking to be the first to run the cryptocurrency’s mining hardware off Earth.

CEO Philip Johnston disclosed the plan on X, writing that Starcloud “will be the first to mine Bitcoin in space.” He argued that application‑specific integrated circuit miners, or ASICs, are better suited to space because they deliver compute at lower cost per unit of power than graphics processors used for AI.

Johnston estimated that ASICs are roughly 30 times less expensive per kilowatt than GPUs. He contrasted a 1‑kilowatt Nvidia B200 that “might cost $30,000” with a 1‑kilowatt ASIC “around $1,000.” Paired with solar power generation in orbit, he noted, that cost gap is central to the project’s economics.

According to him, Bitcoin mining draws about 20 gigawatts of power around the clock. Doing that on Earth doesn’t make sense, and over time he believes the work will shift to space. He added on X that falling launch prices and growing solar power capacity in orbit could help space-based mining scale.

Founded in early 2024 to build data centers in orbit for AI workloads, Starcloud launched a satellite carrying an Nvidia H100 GPU in November, which the company describes as the first operation of a GPU of that class in space. Its architecture envisions a network of about 88,000 satellites powered mainly by solar energy.

The company has not shared the number of ASICs or expected hash rate for its second spacecraft, nor has it detailed the orbital slot or ground communications plan. Starcloud characterizes the mining effort as a proof of concept to demonstrate that sustained, energy‑intensive compute can run off Earth using solar power.

Space‑related Bitcoin work is emerging beyond mining concepts. In September, tech entrepreneurs Jose E. Puente and Carlos Puente outlined a method they say could transmit Bitcoin transactions to Mars in as little as three minutes using optical links and an interplanetary timestamping system. They have argued that mining on Mars would be impractical due to the latency between planets.

Starcloud’s plan arrives as mining economics have tightened. Bitcoin price slipped nearly 48% from its Oct. 6 high of $126,080. Network difficulty has eased about 7% from a record 155.9 trillion in November to roughly 145 trillion, offering some relief while competition remains high.