Nvidia-Backed Starcloud Plans Bitcoin Mining in Space

TLDR

• Starcloud will begin Bitcoin mining in space after launching its second spacecraft later this year.
• CEO Philip Johnston said the company aims to become the first to mine Bitcoin off Earth.
• The company plans to use ASIC miners because they cost far less per kilowatt than GPUs.
• Johnston said a one-kilowatt ASIC costs about $1,000 compared to $30,000 for a similar GPU.
• Starcloud launched a satellite with an NVIDIA H100 GPU into orbit in November.

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Starcloud confirmed plans to begin Bitcoin mining from orbit later this year. The Nvidia-backed startup will activate mining systems on its second spacecraft after launch. CEO Philip Johnston said the company aims to become the first firm to mine Bitcoin off Earth.

Bitcoin Mining to Begin After Second Satellite Launch

Starcloud said it will start Bitcoin mining once it deploys its second spacecraft into orbit. The company expects the launch to take place later this year. Johnston confirmed the plan in a post on X over the weekend.

He wrote, “Starcloud will be the first to mine Bitcoin in space.” He shared the update after speaking with HyperChange in a recent interview. The company positions the mission as part of its broader orbital data center strategy.

Johnston said ASIC miners offer cost advantages over GPUs for space operations. He stated that running ASICs would rank among the most compelling space compute uses. He linked the choice to lower hardware costs and power efficiency.

“GPUs are about 30 times more expensive per kilowatt or per watt than ASICs,” Johnston said. He added that a one-kilowatt B200 chip costs about $30,000. He compared that with a one-kilowatt ASIC priced near $1,000.

Starcloud launched its first satellite in November with an NVIDIA H100 GPU onboard. The mission marked the first time such a GPU operated in space. The company founded operations in early 2024 to build orbital data centers.

Solar-Powered Satellites and Industry Outlook

Starcloud designed its data centers to operate through a network of about 88,000 satellites. The company powers these satellites primarily with solar energy. It aims to supply computing capacity for artificial intelligence workloads.

Johnston argued that space-based mining could reduce Earth-based energy strain. He said Bitcoin mining consumes about 20 gigawatts of continuous power. He claimed space offers a more economical long-term solution.

“It makes no sense to do this on Earth,” Johnston posted on X. He added that in the end state, all mining would move to space. He described space-based mining as a future massive industry.

Bitcoin mining profitability has tightened in recent months due to price pressure. Bitcoin traded nearly 48% below its $126,080 peak from Oct. 6. Lower prices have affected miner revenue across global operations.

At the same time, network difficulty has declined from record highs. Mining difficulty fell 7% from 155.9 trillion units in November. It now stands near 145 trillion units, offering temporary operational relief.

Meanwhile, other entrepreneurs have explored space-based Bitcoin transfer concepts. Jose E. Puente and Carlos Puente proposed interplanetary transaction systems last year. They said optical links could transmit Bitcoin to Mars within minutes.

Puente said latency would limit mining feasibility on Mars. He explained that the distance between planets would slow block validation. However, he maintained that transaction relay through satellites remains possible.

Starcloud plans to proceed with its second spacecraft launch later this year. The company will activate its Bitcoin mining systems after orbital deployment. Johnston confirmed the timeline during his recent public statements.

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