Nvidia-Backed Startup Prepares First Bitcoin Mining Test in Orbit
A startup backed by Nvidia plans to begin testing Bitcoin mining in space later this year, marking one of the most unusual attempts yet to move crypto infrastructure beyond Earth. Starcloud, a space infrastructure startup founded in 2024, says it intends to place Bitcoin mining hardware aboard a spacecraft scheduled for launch later this year. If successful, the company believes orbital computing could eventually become a major industry. Startup CEO Philip Johnston wrote on social media X that Starcloud aims to become the first company to mine Bitcoin outside Earth. He previously discussed the concept in an interview with HyperChange. The idea reflects a broader push among tech companies to explore space-based data centers as global demand for computing power grows. Why the company believes space mining could work According to Johnston, launching specialized Bitcoin mining machines into orbit could be economically attractive because of the type of hardware involved. Bitcoin mining relies on ASIC chips, which are purpose-built processors designed for hashing operations. Johnston argues that these chips provide significantly more computing power per unit of electricity than general-purpose AI hardware. “A GPU is about 30 times more expensive per kilowatt than an ASIC,” Johnston explained. “A B200 chip with a power draw of 1 kilowatt costs around $30,000. An ASIC with the same power draw costs about $1,000.” That difference becomes important in space, where launching equipment is extremely expensive. The lower cost per kilowatt could make ASIC-based systems more practical for orbital computing. Johnston also believes the long-term economics of mining on Earth are becoming less attractive. Bitcoin mining currently consumes roughly 20 gigawatts of electricity worldwide. Johnston argues that as energy constraints grow, the industry could eventually look toward solar-powered infrastructure in orbit. He predicts that Bitcoin mining in space could evolve into a “massive industry” over time. The long-term vision of orbital data centers Starcloud’s broader goal goes far beyond cryptocurrency. The company was founded to build space-based data centers designed to meet the rapidly growing energy needs of artificial intelligence and high-performance computing. In November 2025, Starcloud launched a satellite carrying an Nvidia H100 GPU into orbit, marking the first time such a powerful AI chip had operated in space. The company’s long-term plan envisions an orbital infrastructure of roughly 88,000 satellites powered primarily by solar energy. In theory, this network could support both AI computing and specialized workloads like Bitcoin mining. Could Bitcoin eventually be mined beyond Earth? The concept of moving crypto infrastructure into space has also sparked discussion about interplanetary transactions. Technologists Jose E. Puente and Carlos Puente suggested last September that Bitcoin transactions could theoretically reach Mars in under three minutes using optical communication links such as those developed by NASA or Starlink. Their proposed system would rely on a network of satellites, antennas, and possibly a lunar relay node to transmit transactions across planetary distances. However, the researchers argue that mining Bitcoin directly on Mars would be impractical because of the long communication delays between planets. Legal and technical questions remain Despite the excitement surrounding orbital mining, the idea also raises complex legal and technical issues. Under the 1967 United Nations Outer Space Treaty, satellites remain under the jurisdiction of the country in which they are registered. However, the treaty does not clearly define how cryptocurrency mined in space would be taxed or regulated. There are also technical challenges. Low Earth orbit satellites can only communicate with ground stations during short windows as they pass overhead. This could create interruptions in transmitting newly mined blocks to the Bitcoin network. Whether these limitations would significantly affect profitability remains unclear. Meanwhile miners on Earth face pressure While experimental space projects gain attention, traditional Bitcoin miners continue operating under difficult market conditions. Bitcoin’s price has fallen nearly 48% from its all-time high of $126,080 reached in October. At the same time, mining difficulty recently declined about 7% from record levels, offering some relief to operators. For now, mining remains firmly Earth-bound. But if Starcloud’s experiment succeeds, the next frontier for Bitcoin may not be another country or continent, it could be orbit.