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Plug Power Inc. (Nasdaq: PLUG) saw its stock price drop sharply on Wednesday, November 19, 2025, after announcing a $375 million convertible notes offering. Shares fell from Tuesday’s close of $2.14 to around $1.73, representing a decline of approximately 19%. As of 10:24 AM EST, the stock was trading at $1.9250, down 10.07% for the day. The company is selling these notes to refinance existing high-interest debt.

How Plug Power Structured Its $375M Notes Offering

Plug Power priced the notes at 6.75% interest with a 2033 maturity date. The offering price is set at 95% of the principal amount, and buyers can convert the notes into stock at $3.00 per share – a 40% premium over Tuesday’s closing price. The company expects to receive about $347.2 million after fees and expenses.

The company plans to use most of the money to pay off expensive existing debt. About $245.6 million will go toward repaying 15% secured debentures, while $101.6 million plus $52.4 million in cash will be used to buy back $138 million of 7% convertible notes due in 2026. This move is designed to lower the company’s interest costs and extend when debt payments are due.

PLUG’s Volatility and Profitability Issues Come Back Into Focus

Plug Power’s stock has struggled significantly this year and beyond. The stock is down nearly 12% year-to-date and has fallen 88% over the past three years. With a current market cap of $2.6 billion and a 52-week range of $0.69 to $4.58, the stock remains highly volatile. Trading volume on Wednesday reached nearly 89 million shares, below the average of 119 million.

The company continues to face profitability challenges. In the most recent quarter (Q3 2025), Plug Power reported revenue of $177 million but lost $139 million. The company has cash of only $165.9 million and a debt-to-equity ratio of 66%. Analysts have mixed views on the stock, with price targets ranging from $0.75 to $7.00 and an average of $2.79. While some analysts maintain buy ratings, the convertible notes announcement has raised concerns about dilution and the company’s ongoing cash needs.

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