Todd believes space-based crypto mining could very likely become a reality if launch costs decrease. On Earth, companies like MARA are taking advantage of renewable energy to power data centers with repurposed ASICs to reduce costs and environmental impact. Meanwhile, Foundry, the world's largest Bitcoin mining pool, is restructuring to focus on core operations post-halving. Virgin Voyages is embracing Bitcoin in another way by now accepting BTC for its exclusive "Annual Pass," which offers unlimited cruises for $120,000.
Bitcoin Mining in Space Gains Traction
Peter Todd recently sparked some interest with his blog post exploring the feasibility of establishing Bitcoin mining operations in space. Todd argues that mining crypto in space is not only technically possible with current technology but could also become economically viable if the costs of space cargo launches decrease.
The concept of space-based crypto mining has been discussed for years already, and certain benefits like unlimited solar energy and the elimination of Earth-based carbon emissions are often mentioned. However, critics warn that the high costs of launching, constructing, and maintaining mining facilities in space could lead to centralized control by entities with larger financial resources. While these concerns are still an issue, Todd directly challenges some of the common technical objections to space mining.
In his blog post, Todd brushed off the belief that cooling systems for mining hardware would struggle in space because of the absence of air. Instead, he explains that radiative cooling, which is a process where heat dissipates through thermal radiation, could very effectively tackle this issue. He also dismissed concerns about latency, and explained that careful positioning in a sun-synchronous orbit would minimize delays to negligible levels. Overall, Todd is convinced that there are no fundamental technological barriers preventing the development of space-based mining stations.
Todd did acknowledge that economic feasibility is still a key hurdle. He believes there is a need to reduce launch costs to achieve profitability. If launch costs can align with the economic potential of mining operations, space mining could become a reality.
The possibility of reduced launch costs are not that far fetched, especially with some of the recent advancements in space exploration led by SpaceX. The company’s Starship rocket set new records for payload capacity and thrust.
CEO Elon Musk envisions making space travel a lot more affordable and practical. Some of Musk’s long-term goals include the colonization of Mars. If successful, these innovations could pave the way for more cost-effective extraterrestrial ventures, including crypto mining.
Whether or not this concept actually materializes in the near future, it still serves as a glimpse into the exciting possibilities for Bitcoin and blockchain technology.
Renewable Energy Powers MARA's ASIC Initiative
Conventional crypto mining companies are also exploring innovative ways of doing business. MARA, which was formerly known as Marathon Digital, acquired a wind farm in Hansford County, Texas, as part of its Advanced ASIC Retirement Initiative. The facility has 114 MW of operational wind generation and 240 MW of interconnection capacity.
The acquisition ensures the wind farm's energy will not be curtailed due to excess interconnection capacity, which is a very common issue with alternative power sources in the United States. Instead of connecting the facility to the power grid, MARA plans to use the energy directly to power a data center.
This center will run last-generation application-specific integrated circuits (ASICs), which would otherwise be thrown out or sold on secondary markets. MARA’s chairman and CEO, Fred Thiel is taking the company’s commitment to environmental stewardship very seriously, and believes in the benefits of repurposing ASICs and leveraging zero-marginal-cost renewable energy to lower Bitcoin production costs through vertical integration.
As of late 2023, MARA operates a fleet of around 200,000 ASICs. The company is still the largest publicly listed Bitcoin miner despite facing a $124.8 million net loss in the third quarter of 2024. This was partly due to a $40 million increase in operational expenses. However, MARA still reported a 34.5% year-on-year revenue increase for the same quarter, reaching $131.6 million.
Adding to its strength, MARA disclosed to the U.S. Securities and Exchange Commission (SEC) that it bought 6,484 BTC between October and November of 2024 for $618.3 million in cash. As a result, its total treasury stands at approximately 34,797 BTC, which is valued at around $3.3 billion. In October, the company also achieved its highest production since the April halving by mining 717 BTC.
Foundry Restructures with 27% Staff Layoffs
Foundry, the largest Bitcoin mining pool globally, laid off 27% of its workforce as part of a planned restructuring. The cuts affected 16% of its U.S.-based employees and a portion of its team in India, according to sources.
Foundry's parent company, Digital Currency Group (DCG), revealed plans to spin off Foundry’s self-mining business into a separate entity still under DCG’s control. This move is part of a strategic effort to refocus Foundry on its core operations as the top Bitcoin mining pool and to expand its site operations business.
Bitcoin mining pools comparison (Source: Hashrate Index)
Foundry USA, the mining pool operated by Foundry, controls approximately one-third of the global market share among pool operators, which makes it a very dominant player in the industry. Alongside its mining pool operations, Foundry also runs a self-mining business that DCG estimates will generate close to $80 million in revenue by the end of 2024.
DCG believes that spinning off the self-mining business as a standalone subsidiary will strengthen its operations. The company also plans to bring in external hires and raise additional capital to support the initiative.
Foundry’s restructuring is nothing new, as it reflects broader trends in the Bitcoin mining industry where companies are adapting to the challenges posed after the April halving. This event cuts the number of BTC mined per block in half, which increased operational costs and mining difficulty. Despite these challenges, miners continue to invest in new infrastructure and expand their operations in anticipation of future price increases, according to CoinShares’ Q3 mining report.
Virgin Cruises Now Payable with Bitcoin
Other companies are also embracing Bitcoin in new and exciting ways. Virgin Voyages announced the launch of its “Annual Pass” program for 2025, along with its entry into crypto acceptance by becoming the first cruise product to accept Bitcoin. The new program allows passengers to enjoy unlimited cruises for a year, starting at $120,000 plus taxes, payable in Bitcoin. The company did not share any plans to expand its crypto options to include stablecoins or altcoins.
The Annual Pass builds on the success of Virgin’s previous “Season Pass” program, which targeted remote workers with a “work from sea” experience. Virgin Group founder Richard Branson is excited about the unlimited travel opportunities it offers across a variety of destinations. The pass includes double-occupancy access to a Sea Terrace cabin, which features a private balcony, along with perks like laundry service, internet access, and a $100 bar tab for each voyage.
By integrating Bitcoin, Virgin Voyages positioned itself as a leader in adopting crypto in the travel industry. This move could be very attractive to some whales who might see the offering as a unique way to spend their crypto. While not matching the extravagant lifestyles of yachts and luxury cars often associated with the crypto elite, the Annual Pass still provides an exclusive travel experience.
