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- Nvidia-backed Starcloud links its next spacecraft launch to Bitcoin mining.
- Starcloud says lower ASIC costs make space mining more practical.
- Second spacecraft launch could make Starcloud first off-Earth Bitcoin miner.
Starcloud has placed Bitcoin mining at the center of its next space mission. The Nvidia-backed startup said it plans to begin mining Bitcoin in space later this year. Those attempts are directly related to the launch of its second spacecraft. Consequently, the firm is not only leaving the orbital computing tests but also moving forward with a live Bitcoin mining venture.
Starcloud CEO Philip Johnston says one of the most obvious commercial applications of space-based compute power is mining. According to him, Bitcoin mining is well-suited to orbital infrastructure because ASICs are much cheaper than GPUs. Johnston told him that a B200 chip with 1 kilowatt capacity can cost approximately 30,000. He contrasted this, saying that a 1-kilowatt ASIC costs about 1000 dollars. This cost difference determines Starcloud’s strategy for its next launch preparations.
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Lower Hardware Costs Shape the Mining Strategy
Another point that Johnston made is that the economics of Bitcoin mining encourage the movement of mining operations off the Earth over time. According to him, the industry has a continuous power demand of approximately 20 gigawatts. That scaled of space made space a rational location for future mining capacity. In addition, the system created by Starcloud relies heavily on solar energy, which also supports its larger argument for orbital data centers.
The reasons the company is targeting ASIC miners rather than AI chips in this mission are evident in those remarks. Mining of Bitcoin requires particular equipment and reliable energy supplies. In turn, Starcloud seems to view orbital solar power as a way to meet these needs and minimize reliance on Earth’s electrical systems.
Second Spacecraft Launch Turns Mining Plan Into a Commercial Test
In early 2024, Starcloud was established to establish orbiting data centers. The company offers that model in response to the increasing energy demands of AI systems. It also recently launched a satellite with an Nvidia H100 on board in November 2022. That mission was the first time a GPU of that level took part in space. This means the added weight burdens the second launch, pushing the company out of the demonstration phase and straight into direct revenue-generating scenarios.
The firm’s extended network vision comprises approximately 88,000 satellites. That scale is a long-term goal and not a rollout. The Bitcoin mining plan, however, provides investors and industry observers with a better near-term guide. It demonstrates how Starcloud desires to utilize orbital hardware to support workloads that are directly economically valuable.
Bitcoin Market Pressure Adds Context to the Timing
Investigations on Earth have been tough throughout the last few months. Bitcoin has been declining by almost 48 percent from its highest point on October 6 at 126,080. Nonetheless, mining difficulty has decreased by approximately 7 percent and now stands at 145 trillion, down from 155.9 trillion in November. That fall has provided some relief to miners, as profitability remains under strain.
In the meantime, the global popularity of Bitcoin has also been increasing. Jose E. Puente and Carlos Puente described a process of transmitting Bitcoin to Mars last year. They were based on the optical links, satellites, and interplanetary timestamping. Nevertheless, they asserted that it will not be feasible to mine Bitcoin on Mars due to latency constraints.
The next spacecraft of Starcloud does not seem like another space hardware launch anymore. It becomes the company’s work to start Bitcoin mining in orbit and test whether that model could be efficient at a business level.
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