K2 Space, a California-based satellite manufacturer, has secured a $30 million contract from the U.S. Space Force to launch its first Mega Class satellite. This marks a significant milestone for the startup, founded just two years ago.
The contract is part of the Strategic Financing Initiative (STRATFI) program, which combines government funds with private investment to support advanced space technologies. With contributions from the Space Force’s SpaceWERX organization, the Air Force Research Laboratory, and the Pentagon’s Space Test Program, the total value of the agreement reaches $60 million.
The STRATFI deal was initially announced in August, but details of the contract and the project were disclosed on Dec. 19.
Mega Class Satellite Design
K2 Space aims to disrupt traditional satellite mass and cost relationships with its Mega Class spacecraft bus, priced around $15 million, typically seen in smaller systems. The design includes a 3-meter by 3-meter payload deck, capable of stacking up to 10 units in a single Falcon 9 rocket fairing or equivalent vehicle. The satellite is intended to operate in low, medium, and higher Earth orbits, with national security applications such as the “Resilient GPS” program.
“We’ve gotten a lot of feedback that our bus fills a significant gap in the current architecture,” said K2 Space co-founder and CEO Karan Kunjur. “There are lots of manufacturers for the low Earth orbit satellite market but not many that can fill the demands of MEO and higher orbits.”
‘Gravitas’ Mission Set for 2026
The STRATFI contract funds the design, integration, and launch of a satellite hosting multiple experimental payloads for the Defense Department’s Space Test Program. Named “Gravitas,” the mission is scheduled to launch in February 2026 aboard a SpaceX rideshare mission to low Earth orbit.
K2’s proprietary electric propulsion system will then transport the satellite to a medium Earth orbit (MEO) altitude of approximately 12,000 miles. According to Kunjur, orbit raising can be completed in under three months.
In low Earth orbit (LEO), the satellite will conduct a 12-week phase of experimentation with national security payloads. After this phase, the spacecraft will ascend to MEO for further tests, including space weather monitoring.
The STRATFI agreement follows several smaller Small Business Innovation Research (SBIR) awards, highlighting growing military interest in large, high-powered satellite bus technology. These platforms could support various defense applications, from space domain awareness to communications and navigation systems.
With the Gravitas mission, K2 Space is poised to become one of the first commercial players to demonstrate operational capabilities in MEO.