POET Technologies’ $430 Million Cash Pile Can’t Mask the Damage From a Single Interview

POET Technologies loses $1B in market cap after CFO's Stocktwits chat triggers Marvell contract cancellation, class-action lawsuits, and PFIC tax scrutiny.

The optics around POET Technologies have gone from bad to worse in a matter of days. A stock that had been riding a powerful rally just last week saw nearly half its value evaporate after chip giant Marvell Technology tore up all outstanding orders tied to its newly acquired subsidiary, Celestial AI. The trigger? A casual chat on the Stocktwits financial forum by POET’s own chief financial officer, Thomas Mika.

Mika confirmed during the interview that POET supplies high-bandwidth light sources to Celestial AI, disclosed details about chip-to-chip communication, and floated an order value exceeding $5 million. Marvell, citing a breach of confidentiality, pulled the plug immediately. The stock cratered as much as 46% in a single session before settling at $7.01 by Friday’s close — a far cry from the $15.50 level it had touched just two weeks earlier.

Legal Storm Clouds Gather

The fallout didn’t stop at the trading floor. US plaintiff law firms are now circling, filing class-action lawsuits that accuse management of destroying the company’s commercial prospects through the unauthorized disclosure. The legal complaints also zero in on a separate issue: POET’s tax structure. Because the company is incorporated in Canada, it is classified under US law as a Passive Foreign Investment Company (PFIC), a designation that carries punitive tax treatment for American shareholders. The lawsuits allege that POET misled investors about this status.

The board is moving to address the problem. A proposal to relocate the corporate headquarters to the United States would eliminate the PFIC classification going forward. Shareholders will vote on the redomiciliation at the annual general meeting scheduled for June 26.

Short Sellers Already Had Their Sights Set

The Marvell debacle unfolded against a backdrop of heightened skepticism. Short seller Wolfpack Research had published a report in mid-April labeling POET little more than a stock promotion saddled with a serious tax headache. The firm pointed to seven strategic pivots in the company’s history and negligible revenue generation as evidence of an overvalued business.

Wolfpack’s critique now looks prescient, though the immediate damage came from Mika’s own words rather than an external attack. The confluence of a canceled major contract, a short-seller campaign, and mounting litigation has erased roughly $1 billion in market capitalization.

Production Pipeline Still Running

For all the turmoil, POET is not standing still operationally. The company holds production orders for optical engines worth millions of dollars, and its strategic partnerships with LITEON Technology and Lessengers for data-center modules remain intact. Management is targeting delivery of more than 30,000 units this year.

The balance sheet offers a cushion against the chaos. As of year-end 2025, POET reported cash reserves of $430 million. With operating losses running in the mid-double-digit millions annually, that war chest provides several years of runway even without new revenue from Marvell.

A Leveraged Bet Arrives at the Worst Possible Time

In a move that seems almost designed to amplify the volatility, Defiance ETFs launched a leveraged POET fund on Friday. The product seeks to deliver twice the daily return of the stock, effectively placing a magnified bet on a name that just lost half its value in a week. The fund is likely to attract momentum traders but could also exacerbate the wild swings that have become the norm for the stock.

Key Dates on the Horizon

June is shaping up as a make-or-break month for POET. Shareholders vote on the US relocation on June 26. Just three days later, on June 29, the deadline expires for lead plaintiffs to step forward in the class-action lawsuits. Between now and then, management must convince the market that the remaining production pipeline — the orders from LITEON, Lessengers, and others — can stand on its own without Marvell’s business. The cash is there to buy time, but the credibility gap is widening by the day.