Plug Power Inc. (NASDAQ:PLUG) saw its shares decline 2.2% to $2.65 in mid-afternoon trading on Wednesday, with the market's attention centered on the company's balance sheet and a forthcoming asset sale that investors view as a key liquidity indicator.
Trading volume in Plug shares reached approximately 41.3 million shares, representing a market value of about $109 million. This volume was close to the lower end of the expected proceeds from a deal with Stream Data Centers, which could generate between $132.5 million and $142 million for the company. The asset sale is substantial relative to Plug's unrestricted cash, which stood at $223 million as of March 31. The high end of the sale would account for roughly 64% of that cash pile, underscoring its importance for the company's financial position.
Plug's performance was mixed compared to its peers. The stock fared better than FuelCell Energy Inc. (NASDAQ:FCEL), which dropped 11.3%, Bloom Energy Corp. (NYSE:BE), down 4.6%, and Ballard Power Systems Inc. (NASDAQ:BLDP), which fell 2.6%. The iShares Global Clean Energy ETF (NASDAQ:ICLN) slipped 1.3%, while the iShares Russell 2000 ETF (NYSEARCA:IWM) was nearly flat.
Asset Sale and Cash Position
The Stream Data Centers deal, announced in February, involves Plug selling its stake in the Project Gateway site in New York. The gross proceeds are expected to range from $132.5 million to $142 million, with a closing deadline of June 30. This transaction is a critical component of Plug's broader plan to raise about $275 million through hydrogen project asset sales, as outlined in May. At that time, Plug indicated the first sale, worth approximately $142 million, would close in June.
Plug's first-quarter financial results showed a total cash position of over $802 million, split between $223 million in unrestricted cash and about $579 million in restricted cash. The company expects to free up roughly $50 million of restricted cash each quarter over the next few years. The Stream deal, if completed at the top end, would provide a significant boost to liquidity, representing about 64% of unrestricted cash.
Operational and Financial Updates
CEO Jose Luis Crespo told investors in May that the first-quarter numbers demonstrated "continued progress improving the underlying economics." The company reiterated its target of achieving positive EBITDAS in the fourth quarter of 2026. First-quarter revenue climbed 22% year-over-year to $163.5 million, while GAAP gross margin improved to negative 13% from negative 55% a year earlier. The adjusted loss per share narrowed to 8 cents from 17 cents.
Last week, Plug provided an operational update, announcing the commissioning and handover of a 5 MW GenEco PEM electrolyzer at European Energy's Måde Power-to-X site in Denmark. At full capacity, the facility is expected to produce about 550 metric tons of green hydrogen annually. Crespo noted a shift from "one-off deployments to repeatable execution," while European Energy's Rene Alcaraz Frederiksen called the Måde location "an important step" for project development.
Market conditions for growth and clean-energy stocks remained soft, with the Nasdaq Composite (INDEXNASDAQ:.IXIC) falling 0.22% in afternoon trade. The S&P 500 hovered near unchanged. U.S. markets are scheduled to be closed on Friday, July 3, in observance of the Independence Day holiday, with regular trading hours resuming on Monday.
