Nvidia Backed Starcloud Plans Bitcoin Mining in Space

A startup backed by Nvidia says it plans to begin mining Bitcoin in space later this year as part of its broader effort to build solar powered data centers in orbit.

Key Takeaways

• Starcloud plans to launch a spacecraft later this year carrying Bitcoin mining ASIC hardware.
• The company believes space based solar power could make Bitcoin mining more economical.
• Starcloud is developing large scale orbital data centers powered by solar energy.
• The company previously sent an Nvidia H100 GPU into orbit in November, marking a milestone for space computing.

What Happened?

Starcloud, an orbital data center startup backed by Nvidia, has revealed plans to begin Bitcoin mining in space as soon as later this year. The announcement came during an interview with the HyperChange YouTube channel where CEO Philip Johnston discussed the company’s second spacecraft mission.

The planned spacecraft will include Bitcoin mining application specific integrated circuits, which could potentially allow the company to mine cryptocurrency directly from orbit.

Starcloud Expands Vision for Space Based Computing

Starcloud was founded in early 2024 with the goal of building data centers in space to support the rapidly growing demand for artificial intelligence computing power. The company believes orbit could provide access to abundant solar energy while reducing the strain on Earth based power infrastructure.

In November, the startup launched a satellite carrying an Nvidia H100 GPU, marking the first time such a powerful AI chip has operated in orbit. According to CEO Philip Johnston, the company is now preparing for a second spacecraft launch that will carry a GPU cluster along with Bitcoin mining hardware.

Speaking during the HyperChange interview, Johnston confirmed that the upcoming mission will include specialized mining chips. Johnston also expressed confidence that the company could reach a new milestone in the crypto industry.

Johnston said:

Why Space Could Appeal to Bitcoin Miners?

The main attraction of mining cryptocurrency in space comes down to energy availability. Bitcoin mining requires enormous amounts of electricity, with global operations estimated to consume around 20 gigawatts of power continuously.

Starcloud believes solar energy in orbit could offer a more efficient alternative. Space based data centers would generate power directly from sunlight without the same limitations faced by terrestrial energy grids.

According to Johnston, this energy advantage could make space based mining increasingly attractive.

Another advantage is the cost of hardware. Johnston explained that Bitcoin mining ASIC machines are significantly cheaper than AI GPUs.

• A 1 kilowatt AI GPU chip can cost around $30,000.
• A comparable Bitcoin mining ASIC may cost roughly $1,000.

Because of this price difference, Johnston described mining hardware as one of the most compelling early use cases for space computing infrastructure.

Massive Satellite Network Planned

Earlier this month, Starcloud filed a request with the US Federal Communications Commission seeking permission to operate up to 88,000 satellites designed to function as orbital data centers.

The company’s next satellite, referred to as Starcloud 2, is expected to carry a GPU cluster designed to generate significantly more solar power than its first spacecraft.

However, the technology remains experimental. Johnston acknowledged during the interview that one of the five GPUs on the satellite launched in November had already failed before the mission began.

Growing Industry Interest in Space Data Centers

Starcloud is not alone in exploring computing infrastructure beyond Earth. Several major technology companies have begun evaluating the potential of space based data centers.

Companies such as SpaceX and Google have discussed the possibility as demand for artificial intelligence computing continues to surge.

Nvidia itself has also highlighted the potential of the concept. In a blog post about Starcloud, the company noted that space based data centers could offer ten times lower energy costs while reducing energy consumption on Earth.

Nvidia is also actively hiring for roles focused on orbital computing systems. A recent job listing for an Orbital Datacenter System Architect shows the company is exploring technology designed to support AI systems operating in orbit.

CoinLaw’s Takeaway

In my experience covering both crypto and emerging technology, the idea of mining Bitcoin in space sounds futuristic but it highlights a real problem. Energy demand from AI and crypto is exploding. Companies are searching for new ways to power these systems without overwhelming Earth’s infrastructure.

What I find interesting about Starcloud’s approach is that it combines two energy hungry industries into a single long term vision. If solar power in orbit can truly provide cheaper electricity, the economics could eventually shift in favor of space based operations.

Right now the idea still feels experimental. But history shows that many technologies that once seemed unrealistic eventually became mainstream.

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