Plug Power’s Crossroads: Shareholder Vote to Decide Between Capital Raise and Reverse Split

Plug Power US72919P2020

While Plug Power continues to announce operational progress in its European ventures, a single, pressing financial issue currently overshadows all else for investors. The hydrogen technology company is approaching a pivotal shareholder decision that will determine its strategy for securing liquidity, setting the stage for a critical vote later this week.

The immediate concern centers on the company's financial runway. Despite reporting a share price increase of approximately 15% since the start of the year and securing a significant $1.66 billion loan guarantee from the U.S. Department of Energy (DOE) in January 2025, Plug Power continues to operate at a loss. Financing the capital-intensive build-out of its hydrogen network remains a persistent challenge.

This financial context leads directly to a special shareholder meeting scheduled for Thursday, January 29. Management is seeking approval to double the number of authorized shares from 1.5 billion to 3.0 billion. Company leadership views this authorization as essential to provide flexibility for raising new capital and meeting ongoing obligations.

Should shareholders reject this proposal, Plug Power has a stated alternative: executing a reverse stock split. The urgency of the situation was underscored recently when CEO Andy Marsh took to Reddit to engage directly with investors, advocating for support of the share increase plan.

A Strategic Relief: Revised Terms with Walmart

Amid the financial uncertainty, the company did neutralize one potential pressure point. Plug Power and retail giant Walmart have amended an option agreement originally established in 2017. Walmart relinquished its right to acquire over 55 million shares, averting a specific dilution threat for current equity holders. In exchange, Walmart received a technology license; the financial specifics of this arrangement were not disclosed.

Operational Momentum: A 100 MW Project in Portugal

Separate from its balance sheet challenges, Plug Power's core business continues to hit milestones. On January 23, the company confirmed the complete installation of electrolyzers with a total capacity of 100 megawatts (MW) at the Galp refinery in Sines, Portugal.

Key project details highlight the scale of this deployment:
* Annual Output: Capable of producing up to 15,000 tonnes of green hydrogen per year.
* Environmental Impact: Expected to replace about 20% of the refinery’s grey hydrogen consumption, saving an estimated 110,000 tonnes of CO2 annually.
* Timeline: Commissioning of the facility is anticipated in the second half of 2026.

Thursday's vote will ultimately reveal whether investors are prepared to accept further dilution of their holdings for the sake of the company's long-term stability, or if they will prompt management to pursue the alternative path of a reverse split.