A Washington-based startup plans to launch what it claims could become the first satellite designed to mine Bitcoin in low-Earth orbit, as part of a broader effort to build orbital data centers (09/03).

The company, Starcloud, is developing infrastructure that would place computing systems hundreds of miles above Earth to take advantage of continuous solar energy and the natural cooling conditions in space.

According to a report from PCMag, the planned satellite, called Starcloud-2, is expected to launch in late 2026, carrying a larger GPU cluster and specialized Bitcoin mining hardware known as ASICs (Application-Specific Integrated Circuits).

“There is also bitcoin mining… We will have some bitcoin mining ASICs on the second spacecraft that will launch later this year,” said CEO Philip Johnston in an interview with PCMag. “We believe we will be the first to mine a coin in space.”

Starcloud-1 Mission Demonstrates Orbital AI Computing

The company previously tested its orbital computing concept in November 2025 by launching Starcloud-1 aboard a Falcon 9 rocket operated by SpaceX.

The refrigerator-sized satellite carried five Nvidia H100 processors, marking the first time data center-grade GPUs operated in orbit.

During the mission, Starcloud successfully trained a small large language model and ran inference using a version of Google Gemini.

The experiment showed that high-performance computing workloads typically handled by large ground-based data centers can operate in the vacuum of space.

Continuous Solar Power Could Reduce Energy Costs

The company’s concept relies on two advantages available in orbit.

Satellites placed in sun-synchronous orbits can receive sunlight almost continuously, avoiding the night cycles and weather disruptions that affect solar power generation on Earth.

At the same time, the vacuum of space functions as a natural cooling environment. Radiators can release heat directly into space without the water-intensive cooling systems used by many ground-based facilities.

Starcloud estimates orbital data centers could operate with energy costs around ten times lower than traditional facilities while also achieving a similar reduction in lifetime carbon emissions.

Bitcoin mining is being used as an early test case for the model. Mining hardware is generally cheaper than advanced AI processors and can use excess electricity generated by large solar arrays in orbit.

ASIC mining machines typically cost hundreds or several thousand dollars per unit, compared with tens of thousands of dollars for advanced AI GPUs.

Technical and Regulatory Challenges for Orbital Computing

To support its long-term plans, Starcloud has applied to the Federal Communications Commission for approval to deploy a constellation of up to 88,000 satellites dedicated to orbital computing infrastructure.

CEO Philip Johnston has outlined a long-term goal of building an orbital data center capable of producing five gigawatts of computing capacity using solar panels stretching several kilometers.

However, the approach faces technical challenges. Space hardware must withstand radiation exposure, temperature fluctuations, and possible collisions with orbital debris.

Satellite reliability is also a concern. One GPU on Starcloud-1 reportedly failed before launch.

Regulators and environmental groups are also monitoring large satellite constellations because they could increase orbital congestion and the risk of cascading debris events known as Kessler syndrome.

Growing Interest in Space-Based Data Centers

The idea of mining Bitcoin in space has circulated for years, but Starcloud’s plan represents one of the first publicly announced hardware deployments intended to test the concept.

Another company, Intercosmic Energy, has proposed a roadmap for solar-powered orbital mining systems, although it has not yet launched operational hardware.

Falling launch costs are also helping revive interest in orbital computing. Modern rockets are gradually reducing the price per kilogram sent into orbit, making it more feasible to deploy computing hardware and large solar panels above Earth.

At the same time, improvements in mining hardware efficiency have slowed compared with earlier years. Longer replacement cycles mean ASIC hardware may remain useful for extended periods.

Interest in orbital computing is also growing across the space industry. Companies including SpaceX, Blue Origin, and Axiom Space have outlined plans involving orbital infrastructure capable of supporting computing workloads.

Market projections suggest that orbital data center services could grow rapidly over the next decade and potentially reach tens of billions of dollars as satellite manufacturing and launch technologies improve.

For Starcloud, Bitcoin mining serves mainly as a demonstration. By operating ASIC miners alongside AI hardware, the company aims to show that continuous solar energy in orbit can support both AI workloads and energy-intensive cryptocurrency operations.

PHOTO: UNSPLASH

This article was created with AI assistance.

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