THE CRUNCH

Nvidia-backed startup Starcloud plans to become the first company to mine Bitcoin in space. The firm intends to fire up its cryptocurrency mining ASICs after its second spacecraft reaches orbit later this year. CEO Philip Johnston told Documenting Bitcoin that the second satellite, Starcloud-2, will carry the mining hardware. The project is part of a broader plan to move data centres to space, where continuous solar,

radiative cooling and lack of permitting constraints could support massive compute. Starcloud-2 is the second of four planned launches and will feature a GPU cluster alongside the mining ASICs. The company’s official project page does not mention Bitcoin mining, making the announcement somewhat surprising. Johnston argues that mining is a compelling use case for space compute, noting that ASICs are about 30 times cheaper per kilowatt than GPUs. For example, a 1KW Nvidia B200 chip costs roughly $30,000, while a 1KW ASIC costs around $1,000. While space offers abundant solar power, the vacuum of space presents challenges for cooling and servicing equipment.

Why It Matters: Starcloud’s move highlights how extreme environments like orbit could unlock new economic models for hardware. By leveraging near-constant solar energy and avoiding terrestrial permitting, the startup aims to scale compute in a way that is difficult on Earth. The decision to mine Bitcoin rather than train AI models reflects a pragmatic focus on cost efficiency, as ASICs are significantly cheaper to run than GPUs in space.

WHAT HAPPENS NEXT

The launch of Starcloud-2 is scheduled for later this year.