TLDR

  • After launching its second spacecraft later this year, Starcloud will start Bitcoin mining in space.
  • CEO Philip Johnston stated that the company intends to be the first to mine Bitcoin off Earth.
  • The company intends to use ASIC miners since they cost significantly less per kilowatt than GPUs.
  • Johnston mentioned that a one – kilowatt ASIC costs around $1,000, while a similar GPU costs $30,000.
  • In November, Starcloud launched a satellite with an NVIDIA H100 GPU into orbit.

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

Bitcoin Mining to Begin After Second Satellite Launch

Starcloud said it will start once it deploys its second spacecraft into orbit. The company anticipates the launch to occur 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 this update after having a conversation with HyperChange in a recent interview. The company positions this mission as part of its broader orbital data center strategy.

Johnston said that ASICs offer cost advantages over GPUs for space operations. He stated that running ASICs would be among the most appealing space compute uses. He associated this choice with lower hardware costs and power efficiency.

“GPUs are approximately 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 this with a one – kilowatt ASIC priced close to $1,000.

In November, Starcloud launched its first satellite with an NVIDIA H100 GPU on board. This mission marked the first time such a GPU was operated in space. The company started its 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 mainly powers these satellites with solar energy. It aims to provide computing capacity for artificial intelligence workloads.

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

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

Bitcoin mining profitability has become more restricted in recent months due to price pressure. Bitcoin is trading nearly 48% below its $126,080 peak on Oct. 6. Lower prices have affected miner revenue across global operations.

At the same time, network difficulty has decreased from record highs. Mining difficulty dropped 7% from 155.9 trillion units in November. It now stands at around 145 trillion units, providing 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 that optical links could transmit Bitcoin to Mars within minutes.

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

plans to go ahead 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.