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Plug Power Inc (Nasdaq: PLUG) is pushing further to the upside this morning, even though the clean energy company proposed two “equally unattractive” alternatives to investors last week.

The hydrogen fuel cell company is seeking authorisation to issue more stock or resort to a reverse stock split to remain listed on Nasdaq.

Still, Plug Power stock has gained more than 30% month-to-date.

Why are both proposals bad for Plug Power stock?

Investors should consider using the recent rally as an exit opportunity from Plug Power Inc., as the proposals on the table offer little upside for shareholders.

An increase in the number of authorized shares would dilute existing ownership, while a reverse stock split often reflects distress and can further erode market confidence.

Though Plug Power’s technological edge and long-term vision remain noteworthy, its current financial position is precarious, justifying a reduction in exposure.

If the company’s execution falters, bankruptcy is not an unthinkable outcome.

Plug Power stock is currently down more than 65% versus its year-to-date high.

PLUG shares may continue to struggle 

Funding challenges remain a huge overhang on PLUG shares. Since going public, the company based out of Latham, NY, has leaned heavily on issuing new shares to stay afloat.

The result? A stock that’s now worth less than 1.0% of its peak value. Long-term investors have paid a steep price for the company’s inability to turn promise into profit.

After spending more than two decades in the public market, Plug Power’s road to profitability is still murky at best.

In its latest reported quarter, the Nasdaq-listed firm lost about $197 million, indicating substantial execution risks as it scales.

Its ambitious projections hinge on a rapid increase in hydrogen demand, robust infrastructure deployment, and policy support – none of which was evident in its Q1, given the top-line grew just 11% in the quarter.

Trump administration may further threaten Plug Power

To its credit, Plug Power has recently secured other sources of capital.

In early 2025, it finalized a $525 million secured credit facility with Yorkville Advisors.

That deal followed a nearly $1.7 billion loan guarantee from the US Department of Energy (DOE) to support the buildout of six hydrogen production facilities across the country.

Investors cheered those announcements at the time since they meant a lifeline that could help PLUG avoid any further dilution due to equity offerings. But that didn’t pan out either, given the firm’s two equally unattractive proposals earlier this month.

Moreover, the DOE guarantee was approved under the Biden administration as part of its broader commitment to renewable energy.

But will it remain fully in place under President Trump, who’s already been skeptical of clean energy subsidies? Only time can tell!

Note that Wall Street also rates Plug Power stock at “hold”, at the time of writing.

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