NASA awarded space exploration company Intuitive Machines a multi-billion dollar contract to construct a satellite constellation for communication and navigation services for missions in the near space region, which extends from Earth's surface and beyond.
According to a statement by Intuitive Machines, the contract has a base period of five years and an additional five-year option period. Its maximum potential value is $4.82 billion.
The key highlights of the contract include Intuitive Machines' lunar satellite constellation, which will allow for commercialized lunar activities. The satellite will provide enhanced data and transmission services and autonomous operations, creating infrastructure for the company's three pillars to commercialize space:
-
Delivery: Scaling lunar lander capabilities to support cargo and infrastructure delivery.
-
Data Transmission Services: Establishing a network of satellites capable of delivering 4K resolution video data and navigation services, assisting in landing site selection and resource prospecting.
-
Autonomous Operations: Developing infrastructure, logistics, and mapping solutions on the Moon to facilitate exploration and operations.
"This contract marks an inflection point in Intuitive Machines' leadership in space communications and navigation," Intuitive Machines CEO Steve Altemus said, adding, "We're pleased to partner with NASA, as one team, to support the Artemis campaign and endeavors to expand the lunar economy."
The space exploration company's shares jumped 52% in premarket trading Wednesday. As of Tuesday's close, shares were up 111% year-to-date.
The latest Bloomberg data shows that the float is 25% short, equivalent to about 13.4 million shares.
Intuitive Machines made headlines earlier this year after its lunar lander "tipped over" after touching down on the Moon. Shares were immediately halved from the $11 handle.
Meanwhile, SpaceX's Starlink already has a massive satellite internet constellation around Earth and recently tested advanced Starlink laser communication technology.