LUNR Stock Falls 16% As $175M Dilution Deal Weighs On Shares – Retail Calls The Dip An ‘Overreaction’
Synopsis
The company said the equity investment from global institutional investors is expected to strengthen its position in higher-margin programs, including Golden Dome initiatives and NASA-related contracts.
- The company is considering using the funding to invest in the satellite platforms of its recently acquired unit, Lanteris Space Systems.
- Intuitive Machines announced plans to expand its NASA-contracted Near Space Network Services.
- According to an SEC filing, Intuitive Machines will raise the $175 million at $15.12 per share, which translates to roughly 11.6 million shares.
Shares of Intuitive Machines Inc. (LUNR) fell 16% in morning trade on Wednesday, following the company’s announcement of a $175 million strategic equity investment from global institutional investors.
According to an SEC filing, Intuitive Machines stated that it will raise the $175 million at $15.12 per share, which translates to roughly 11.6 million shares. As per Koyfin data, the company has 119.32 million outstanding shares, so it is diluting around a 9.7% stake.
The investment is expected to strengthen its position in higher-margin, recurring programs, including Golden Dome missile defense system initiatives and NASA-related contracts. The equity deal, involving the issuance of Class A common stock, is expected to close on Feb. 27, 2026, the company said.
“We are building a scalable infrastructure platform from low-Earth orbit to the Moon and into deep space. With this investment, we can accelerate the integration of the combined company’s collective capabilities to deliver next-generation data, communications, and space-based infrastructure services,” said CEO Steve Altemus.
Plans To Grow Near Space Network Services
Intuitive Machines said it plans to expand its Near Space Network Services, under contract with NASA, and develop a “solar system internet” independent of Earth.
According to NASA’s website, Near Space Network provides communications and navigation services for missions operating up to 1.25 million miles — or two million kilometers — from Earth’s surface.
The company will look to use the funding to invest in the satellite platforms of its recently acquired unit, Lanteris Space Systems.
Intuitive Machines added that it intends to increase its presence in geostationary orbit, strengthen operations around the Moon, expand future missions to Mars, and advance high-powered data processing in space.
How Did Stocktwits Users React?
Despite the sharp intraday decline, retail sentiment for LUNR on Stocktwits flipped to ‘bullish’ from ‘bearish’ a day earlier.
Chatter was largely bullish, with one user expecting the company to announce acquisitions following the dilution.
Another user said the sell-off was an “overreaction.”
LUNR shares have declined more than 14% in the past year.
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