Why Plug Power Stock Crashed 14% on Friday

Core Viewpoint - Plug Power's stock price dropped significantly after the announcement of a surprise stock sale to raise cash, highlighting the company's ongoing financial struggles [1][2]. Group 1: Stock Sale Details - Plug Power announced the sale of over 78.7 million shares at $2.54 per share, aiming to raise $200 million in new capital [2]. - If demand allows, the company plans to sell an additional 11.8 million shares, potentially increasing total capital raised to approximately $230 million before costs [2]. Group 2: Financial Condition - The company is facing a cash crisis, with cash reserves reported at less than $173 million against $950 million in debt [2]. - Over the past 12 months, Plug Power has burned through $1.6 billion in cash, indicating severe liquidity issues [2]. Group 3: Cash Flow Concerns - Plug Power has never generated positive free cash flow since it began reporting in 1997, with analysts predicting it may not achieve this until 2028 [3]. - Even with the maximum potential from the stock offering, the $230 million raised would only cover less than two months of cash burn, necessitating further stock sales within four months to remain solvent [3].