Nvidia-backed Starcloud plans to mine Bitcoin using satellites in space

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Highlights

Starcloud announces plans to mine Bitcoin using orbital satellites.
Experts caution space mining remains experimental and costly.
Orbital data centers could reduce energy use and increase efficiency.

A forward-looking idea

Starcloud’s ambitious plans were reported by Cointelegraph’s X account, citing the company’s CEO, Philip Johnston.

The startup aims to leverage space resources and technology to increase the efficiency and sustainability of Bitcoin mining operations. According to the developers, moving computing power to orbit could reduce the environmental impact associated with traditional Earth-based mining farms.

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"Solar energy is infinite, there are no land costs, no noise complaints, and the government cannot raid your operation. The economics seem insane until you realize that most of the constraints that hold back ground-based mining simply don’t exist in orbit. Starcloud is either ten years ahead of its time or perfectly timed," Johnston commented on the idea via the crypto platform Payzora.

For those following Starcloud’s development, the latest announcement on crypto mining appears to be a logical extension of the company’s strategy. Previously, the startup announced a project for orbital data centers and, with NVIDIA’s support, launched the Starcloud-1 satellite in the fall, equipped with a powerful Nvidia H100 GPU. Reports indicate that it successfully ran and trained a small AI model directly in space.

Additionally, the company has filed an application to create a constellation of up to 88,000 satellites, which would form a full-fledged space infrastructure for cloud computing. Within this architecture, part of the computing capacity could also be used for crypto mining.

Pros and cons of space projects

The idea of space-based data centers is being actively discussed in the market, as the AI industry increasingly consumes more energy and tech companies search for new sources of computing power.

Analysts report that large AI data centers today can consume hundreds of megawatts to several gigawatts of power—comparable to the energy consumption of small cities. Against this backdrop, moving part of the computing load to orbit is seen as a way to reduce pressure on terrestrial power grids.

In space, satellites receive a near-continuous flow of solar energy, while the surrounding temperature of around –270 °C allows for efficient heat dissipation. This makes orbit potentially attractive for operating ASIC miners and GPUs, which on Earth require complex cooling systems.

Moreover, in a vacuum, signals propagate faster than in fiber-optic cables, which theoretically could accelerate the transmission of blocks in the Bitcoin network and reduce the likelihood of so-called “orphan blocks.”

Nevertheless, developing space infrastructure faces serious challenges. These include the high cost of launching equipment into orbit, the need to protect electronics from cosmic radiation, and the difficulty of repairing and upgrading satellites. Any maintenance of such systems would require launching new units or robotic service missions.

The race for orbital data centers

Despite the technological challenges, several companies are already exploring the prospects of orbital computing. Among them are the U.S.-based Axiom Space, Starcloud, and Lonestar Data Holdings, which view space as a potential platform for cloud services, data storage, and high-performance computing.

At the same time, similar technologies are being explored in China. Several Chinese projects are investigating the concept of Space Solar Power + orbital computing, where satellites simultaneously generate solar energy, perform computations, and transmit results back to Earth.

Given the rapid pace of China’s space program, some analysts do not rule out that the first fully operational orbital data center could appear there.

A new niche for the space economy

Another factor that could accelerate the development of orbital computing is the rapid growth in energy consumption by the digital economy. Research firms predict that by the end of the decade, global demand for AI computing power could multiply, creating significant strain on energy infrastructure.

In this context, space-based data centers are being considered as part of the emerging space economy, where orbital infrastructure will be used not only for communication and Earth observation but also for data processing, information storage, and supporting distributed networks, including blockchain.

As we wrote, Starcloud partners with RKLB to launch NVDA H100s into orbit

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