An idea that sounded like science fiction just a few years ago is starting to become a real technological experiment. Startup Starcloud, which is building orbital data centers, has announced plans to begin mining Bitcoin directly in space later this year. If the project succeeds, it would mark the first time the world’s largest cryptocurrency is mined outside planet Earth.
The Nvidia-backed company aims to take advantage of the growing demand for computing power and energy by moving part of the digital infrastructure beyond the Earth’s surface.
Bitcoin mining in space
The plan was introduced by Starcloud CEO Philip Johnston, who described the project in an interview with HyperChange and later mentioned it on the social platform X. According to him, the company plans to begin mining Bitcoin after the launch of its second spacecraft later this year.
“Starcloud will be the first company to mine Bitcoin in space,” Johnston said. He added that Bitcoin mining is one of the most compelling uses for space-based computing infrastructure, mainly because of its economic efficiency.
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ASIC vs. GPU: a major difference in cost
A key argument for mining cryptocurrencies outside Earth is the cost of computing power. Bitcoin mining relies on specialized ASIC chips (Application-Specific Integrated Circuits) designed specifically for this purpose. Compared with GPUs used for artificial intelligence workloads, they are significantly cheaper.
“GPUs are roughly thirty times more expensive per kilowatt or watt than ASICs,” Johnston explained. “For example, a 1-kilowatt B200 chip may cost around $30,000, while a 1-kilowatt ASIC costs roughly $1,000.”
Thanks to this cost efficiency, cryptocurrency mining could become an ideal way to utilize computing capacity in space. Johnston even suggested that a large portion of Bitcoin mining could eventually move beyond Earth.
“Bitcoin mining currently consumes about 20 gigawatts of power continuously. It doesn’t make sense to do that on Earth,” he said.
Orbital data centers as a solution for AI
Starcloud was founded at the beginning of 2024 with the goal of building a large infrastructure of data centers in orbit.
The company is responding to the rapidly growing energy demands of modern technologies, especially artificial intelligence, which requires increasing amounts of computing power.
In November, the company launched a satellite equipped with an Nvidia H100 GPU into orbit — the first time such a powerful graphics processor has operated in space.
Starcloud’s future infrastructure could be massive. According to current plans, orbital data centers could eventually consist of up to 88,000 satellites powered primarily by solar energy.
The availability of almost unlimited sunlight in space is one of the main reasons why companies are considering moving energy-intensive computing beyond Earth.
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Bitcoin between planets?
Technological experiments with cryptocurrencies are not limited to Earth’s orbit. Entrepreneurs Jose E. Puente and Carlos Puente proposed a concept last year describing how Bitcoin could theoretically be transmitted between planets.
According to their proposal, it could be possible to send a Bitcoin transaction to Mars in about three minutes using optical communication through NASA or Starlink infrastructure combined with a specialized interplanetary timestamp system.
Transactions would travel through a network of space stations — satellites and antennas — before reaching the destination planet. However, mining Bitcoin on Mars itself would not make sense for now. The reason is the latency between planets, which would significantly complicate blockchain synchronization.
Bitcoin mining faces a challenging period
Plans for space mining come at a time when the mining industry itself is under economic pressure. Profitability has declined in recent months mainly due to the drop in Bitcoin’s price, which has fallen nearly 48% from its peak of $126,080 reached on October 6.
Some relief has come from the network’s technical development. Bitcoin mining difficulty has decreased by about 7%, from a record 155.9 trillion in November to roughly 145 trillion. This drop gives miners at least temporary room for improved profitability.
A new frontier for the crypto industry
Although Starcloud’s project remains experimental, it illustrates how quickly the crypto industry and the broader technology sector are evolving.
If the plan succeeds, Bitcoin mining could become one of the first commercial uses of orbital data centers while opening a completely new chapter in the connection between space technology and the digital economy.
What sounds today like a futuristic concept could become part of the everyday infrastructure of the global internet and the cryptocurrency network within just a few years.
