Margins — Chris Kemp unpluggedAstras CEO dishes on the space companys struggles “Im a public company, I cant make this shit up.”
Stephen Clark – Aug 21, 2023 9:31 pm UTC Enlarge / Chris Kemp, founder and CEO of Astra.David Paul Morris/Bloomberg via Getty Images reader comments 28 with
Chris Kemp is a fighter. That’s the price of admission if you want to compete in the brutal small launch industry. He is the co-founder, chairman and CEO of Astra, founded in 2016 with a goal of essentially commoditizing small satellite launch services, or at least getting a lot closer to that than anyone else.
But there are a lot pressure points for Astra in 2023. The company abandoned its first orbital rocket design, called Rocket 3, last year after a string of failures. With higher interest rates, raising money in 2023 isn’t as easy as it was a few years ago. And calling Astra’s competition stiff is definitely an understatement.
Kemp argues that Astra finds itself in a different position than, say, Virgin Orbit, a small satellite launch company that went bankrupt earlier this year. Astra has diversified, and can lean on a separate source of revenue in a promising business building electric thrusters for small satellites. This business, which Astra calls spacecraft engines, was made possible by the acquisition of a company called Apollo Fusion in 2021.
SpaceX is achieving great success in aggregating large numbers of small satellites onto its Falcon 9 rocket, significantly bigger than vehicles like Rocket Lab’s Electron launcher or anything on Astra’s drawing board.
That has pushed Rocket Lab and Relativity Space to prioritize developing larger rocketsthe Neutron and Terran Rthat are partially reusable to better compete with SpaceX’s Falcon 9. Astra, on the other hand, is still betting what an inexpensive, mass-produced, expendable small rocket can be successful in winning business to haul lightweight satellites into orbit, either one at a time, or in small groups. The argument there is that a small rocket can deliver payloads to optimal orbits, instead of releasing them at an undesirable altitude or inclination.
Whether or not that’s the right business strategy, the predicament that Astra currently finds itself in is that the first iteration of its small launch vehicle, Rocket 3, failed to become a reliable option for customers. In seven orbital launch attempts, Rocket 3 failed five times. To be fair, Kemp points out that some of these launches were test flights without functioning satellites on board. Astra moved on from Rocket 3 after a launch failure in June 2022 destroyed two NASA hurricane research satellites. Advertisement
Ars published a story last week about the headwinds facing Astra, which recently announced layoffs of about 25 percent of its workforce. It is now staffed at between 200 and 250 employeesquite a lean operation compared to peers in the small launch industry. Around 50 of those employees were shifted from working on Astra’s new rocket, called Rocket 4, to devote their time to satellite propulsion systems.
Astra has a big challenge ahead, but it’s obvious Kemp isn’t ready to throw in the towel. Hespoke with Ars on Friday from Astra’s rocket factory in Alameda, California. Here are some highlights. Is it fair to say Astra is in a fight for survival?
Chris Kemp: “It is a little unfair … We have a very profitable source of revenue, which is our spacecraft engine. Weve sold hundreds of them at great margins.
“This is our rocket facility. This is a quarter of a million square feet. You can see the rocket production line behind me. There are people down there making rocket stuff. Its real. Thats a Rocket 4 stage on the production line … I could characterize the launch business at Astra as fighting for its survival, but I wouldnt characterize Astra as fighting for its survival. Astra has always had the option of just stopping the launch business. The reason why we havent is we have already largely completed the development and the capex [capital expenditures] required to manufacture the vehicles two years ago, when we started the Rocket 4 program, hundreds of millions of dollars ago, before we had engines and stages and a giant $100 million production line. Weve now done so much work toward this program that the next step is just testing things and going out and doing some test flights. Then the Space Force has some flights. We have some NASA flights. We have a backlog of launch contracts. In the case of the Space Force contract, thats an $11.5 million contract, millions of dollars of cash comes in, in advance of launch, because of the milestones were achieving.
“So I look at it and I say, well, if I were not to do launch, we simply wouldnt be able to bill the Space Force for these milestones. So what it does it cost me to continue running launch versus what would it cost me to shut down launch? Its kind of a wash, honestly, if we continue to get contracts and government support for launch, and the government has said that they really want to support it. I mean, there are three (private or venture-backed) companies right now operating that have put satellites in orbitSpaceX, Rocket Lab, and Astrafull stop. Fireflys stuff deorbited in a few days. ABL blew up everything, Relativity failed and scrubbed the program and wont fly again until 2027 [Relativity says Terran R’s first flight is scheduled for 2026]. Advertisement Enlarge / Astra revealed a prototype of its Rocket 4 launch vehicle in May.Astra
“The way I look at it is there are three launch companies that can point to the sky and say weve put satellites in orbit, and were one of them. And were the only one of them that has already invested hundreds of millions of dollars in a production line. Were the only one of them that has a mobile system that we have already demonstrated. We can go to Cape Canaveral and set up in under a week. We have some Space Force people here right now walking the production line … We have folks that view what Astra has built and demonstrated, and they say, ‘This has value to us, you guys have a mission control with two people in it, you guys have a system that last year deployed at Cape Canaveral in six days.’
“Its only going to get better from here with a 600-kilogram class vehicle (Rocket 4’s planned payload capacity to low-Earth orbit), and I think that puts Astra in a position where just killing launch, given we have customers and cash and revenue coming into that business, isnt an obvious choice for us. Its a risky choice for us.
“But weve got this public company now with stock trading at 25 cents per share. That makes it nearly impossible for us to raise any meaningful amount of capital in public markets. So that basically means that we need to take the revenue coming in, the cash coming in from our spacecraft engines business, and whatever cash comes in from our launch business, and kind of make it work.” Page: 1 2 3 Next → reader comments 28 with Stephen Clark Stephen Clark is a space reporter at Ars Technica, covering private space companies and the worlds space agencies. Stephen writes about the nexus of technology, science, policy, and business on and off the planet. Advertisement Channel Ars Technica ← Previous story Next story → Related Stories Today on Ars
It’s been more than a year since a ceasefire was agreed in Lebanon, but data shows that the truce between Israel and Hezbollah is more fragile than ever.
The independent conflict monitoring organisation ACLED has recorded 1,846 Israeli attacks on Lebanon since the ceasefire began.
On average, only two days of each month have not seen an Israeli attack.
The bombings have grown more frequent in recent weeks, with an average of six per day so far in December, or one every four hours – the fastest pace of attacks since March.
The Lebanese children bombed by Israel
Israel says it is targeting Hezbollah military infrastructure
The ceasefire deal requires both sides to withdraw from southern Lebanon, the area south of the Litani river.
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The UN mission in southern Lebanon, UNIFIL, says the agreement has been violated more than 10,000 times – once every 53 minutes.
That includes the attacks monitored by ACLED, as well as more than 2,500 IDF ground activities and over 7,800 violations of Lebanese airspace.
It also includes the discovery, by UNIFIL, of more than 360 weapon and ammunition caches south of the Litani river.
Israel says that these caches are evidence that Hezbollah is seeking to rebuild its military infrastructure in southern Lebanon, an allegation denied by both Hezbollah and UNIFIL.
“None of these weapon caches were guarded,” says UNIFIL deputy spokesperson Kandice Ardiel. “They had no obvious signs of recent use and were presumably abandoned. Many were even destroyed already, or half-destroyed.”
An IDF spokesperson said that Hezbollah’s attempts to rebuild its military infrastructure in southern Lebanon “are not open to interpretation”.
“In the absence of sufficient enforcement by UNIFIL, and out of commitment to the security of the Israeli civilians, the IDF continues to operate in a focused manner against Hezbollah’s restoration attempts,” the spokesperson said.
At least 127 civilians have been killed by Israeli attacks since the ceasefire began, according to the UN.
Israel argues that the ceasefire agreement requires Hezbollah to disarm in all parts of Lebanon, not just the south. Hezbollah disputes this, and says it will not consider full disarmament until Israel withdraws entirely from Lebanese territory.
Israel has established five military bases inside Lebanon
This withdrawal was supposed to take place by 27 January 2025, a deadline that was later extended to 18 February.
But instead of withdrawing from its Lebanese bases, Israel began cementing its presence.
Sky News has confirmed, based on satellite imagery, that Israel started construction on a new base, shown below, between 8 and 18 February – within days of the withdrawal deadline.
Image: Israeli base on Tzivoni ridge, Lebanon, 18 November 2025. Pic: Planet Labs PBC
Israel retains control of four other bases on Lebanese territory, scattered along hilltops near the border.
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“We need to remain at those points at the moment to defend Israeli citizens, to make sure this process is complete and eventually hand it over to the Lebanese armed forces,” IDF spokesman Nadav Shoshani said in February.
Lebanon has raised complaints with the UN about these bases, as well as Israel’s recent extension of its border wall. The UN says that two sections of the wall cross into Lebanese territory, putting around one acre on the Israeli side.
Image: Israeli border wall under construction near Yaroun, 18 November 2025. Pic: Planet Labs PBC
Sky News asked the IDF whether it accepted the UN’s findings, but did not receive a response to this question.
In the image below, part of the newly constructed wall can be seen passing between border posts, highlighted in green, into Lebanese territory.
Image: A newly-constructed portion of Israel’s border wall is seen crossing into Lebanon, with border posts highlighted. Pic: AP
Construction of the wall resumed over summer, having been halted since hostilities erupted in October 2023. Based on satellite imagery, Sky News estimates that a total of 12km of wall have been erected in recent months.
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The continued presence of Israeli forces has hampered reconstruction efforts. More than 64,000 Lebanese people remain displaced from their homes.
Sky News visited one of the towns that sits in view of the Israeli base on Mount Balat. The town, Aita al Chaab, has been almost entirely destroyed.
Image: Wreckage in the border town of Aita al Chaab
Satellite imagery, taken on 24 November, shows the town in ruins. Out of 326 buildings in the town centre, 293 (91%) have been destroyed.
Since the ceasefire began, the destruction has continued and has spread to the Aita al Chaab’s outskirts.
“Anyone who comes to rebuild is attacked [by Israel],” one resident told Sky News.
The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.
Donald Trump’s administration has installed new plaques beneath portraits of former presidents attacking his predecessors in the US president’s typical fashion.
Among the plaques, apparently written by Mr Trump himself, is one for Joe Biden reading: “Sleepy Joe Biden was, by far, the worst president in American history.”
The “Presidential Walk of Fame” at the White House features a picture or painting of every former US president – except Mr Biden, who has been replaced by a photo of an autopen.
Image: Biden’s refers to ‘Sleepy Joe’. Pic: Reuters
Mr Trump has repeatedly claimed Mr Biden was not mentally capable by the end of his term as president and his staff made decisions on his behalf, using an autopen to sign them off without his knowledge.
The device reproduces a person’s signature, allowing them to repeatedly sign documents without having to do so by hand each time.
The damning decoration goes on to falsely accuse Mr Biden of winning the “most corrupt election ever” and claims he made “unprecedented use of the autopen.”
Image: Obama’s says he presided over a ‘stagnant economy’. Pic: Reuters
Another plaque refers to “Barack Hussein Obama” as “one of the most divisive political figures in American history.”
The plaque underneath Bill Clinton’s photo reads: “In 2016, president Clinton’s wife, Hillary Clinton, lost the presidency to President Donald J Trump!”
Even George W Bush, a fellow Republican – though not a Trump supporter – is given a badge of rebuke, with his plaque saying the former president “started wars in Afghanistan and Iraq, both of which should not have happened.”
Image: Bush’s plaque attacks the wars in Iraq and Afghanistan. Pic: Reuters
The “Presidential Walk of Fame” is a recent addition to Mr Trump’s White House and displays the portraits along corridors between the Oval Office and the South Lawn.
The White House press secretary, Karoline Leavitt, said the plaques were an “eloquent” description of each president’s legacy.
“As a student of history, many were written directly by the president himself,” she said.
It is the latest change to Mr Trump’s White House, which has seen the increased use of gold-coloured accents and gilded fixtures that mimic the decorations in Trump Tower in New York and his Mar-a-Lago estate in Florida.
The US Federal Reserve has withdrawn a 2023 guidance that limited how Fed-supervised banks, including uninsured ones, engaged with crypto, as US regulators continue to pivot positively toward digital assets.
The 2023 guidance required uninsured banks to follow the same rules as federally insured institutions, based on the principle that similar activities pose similar risks and should be subject to identical regulation.
This prevented uninsured banks from engaging in activities that weren’t permitted for national banks, like crypto services, which automatically disqualified Fed membership because the institution’s primary activities weren’t allowed.
Fed says financial system has evolved since 2023
The Fed said a key reason for withdrawing the guidance was that it was outdated and “the financial system and the Board’s understanding of innovative products and services have evolved.”
“As a result, the 2023 policy statement is no longer appropriate and has been withdrawn,” it said.
A master account with the Fed enables a financial institution to hold balances directly with the US central bank and access its core payment systems, allowing for payment settlement in central bank money rather than relying on another bank as an intermediary.
“The Fed broke the law by citing this very guidance in the Custodia denial, even tho the guidance hadn’t become official yet, that didn’t happen until Feb 2023,” Long said.
“But most of that team is now gone or out of power at the Fed. Nature is healing. Thank you VCS Bowman & Gov Waller!” she added.
New guidance to boost bank innovation
The move on Wednesday came as the Federal Reserve issued new guidance to establish a formal pathway for both insured and uninsured Federal Reserve-supervised state member banks to pursue “innovative activities,” such as cryptocurrencies, provided risk-management expectations are met, according to a statement on Wednesday by the Fed.
Fed vice chair for Supervision Michelle Bowman said that by “creating a pathway for responsible, innovative products and services, the Board is helping ensure that the banking sector remains safe and sound while also modern, efficient, and effective.”
Fed decision wasn’t unanimous
Fed Governor Michael Barr dissented to the decision, arguing that the principle of equal treatment among banks helps maintain a level playing field and prevents regulatory arbitrage.
“This principle continues to hold true today. Therefore, I cannot agree to rescind the current policy statement and adopt a new one that would, in effect, encourage regulatory arbitrage, undermine a level playing field, and promote incentives misaligned with maintaining financial stability. I dissent,” he said.