Elon Musk once again puts forward a new conjecture on X. On November 4th, he posted: "Data centers in space now seem quite enticing."

What Musk is talking about are data centers, but this idea can also be applied to the field of cryptography: could Bitcoin mining equipment operate in orbit, powered solely by the sun? Technically, it should be possible, so why not? However, from an economic perspective, the issues become much more complex.

Solar-powered Bitcoin mining

There is a huge advantage in space: abundant solar energy. Unlike mining sites on Earth, mining stations in orbit can generate their own power using large solar panels, eliminating the need for a power grid. Today's satellites can continuously draw energy from sunlight, thereby reducing battery consumption.

Theoretically, Bitcoin ASIC mining machines can operate around the clock, with extremely low or even virtually zero continuous power costs. The problem is that solar panels, batteries, and electrical electronic devices all need to be put into place first – and that’s where the trouble lies.

Space seems like an ideal location for cooling mining equipment, as the background temperature of the universe is extremely low. Unfortunately, things are not that simple; the vacuum in space actually makes heat dissipation more difficult than on Earth.

On Earth, mining machines use fans, air conditioning, or liquid cooling to dissipate heat; however, in orbit, there is no air to carry away the heat. Therefore, the only feasible solution seems to be liquid cooling, along with large heat dissipation plates that release heat through infrared radiation.

Actual Estimation

According to Boston Consulting Group ( BCG ), a 100-kilowatt orbital data center may require approximately 400 square meters of cooling panels. In addition to technical challenges, profitability must also be taken into consideration. The very idea of sending equipment into space first makes the whole concept questionable.

BCG indicates that the current cost of delivering supplies into orbit is approximately $1,500 per kilogram. This means that the launch cost for a set of mining equipment weighing one ton would be around $1.5 million, not to mention the costs of hardware, cooling systems, solar panels, and maintenance, which can also be equally high, or even higher.

You still can't ignore issues such as space radiation, equipment failures, and limited maintenance opportunities, all of which will further increase costs. The only things that can make this equation look a bit more favorable are more efficient ASIC chips, as well as the ability to send goods into space at a cost far lower than today's rates.

Fortunately, Bitcoin miners require very little bandwidth, or almost no bandwidth at all, so connection issues can be resolved to some extent on their own.

Physically, it is feasible to mine Bitcoin in space; however, financially, whether it is worthwhile is another matter. Reusable rockets, more lightweight cooling solutions, and other improvements might make it more economical, but for now, we should continue to use the traditional mining machines found in the large data centers on Earth.