Plug Power Secures Cash Through Strategic Asset Sale

Plug Power has entered into a definitive agreement to sell a key New York facility, converting physical infrastructure into much-needed capital. This transaction represents the initial phase of a broader strategy aimed at bolstering the hydrogen company’s liquidity by more than $275 million. The move raises questions about whether it will be sufficient to alleviate ongoing financing concerns.

A Three-Phase Liquidity Strategy

The company has framed this sale as the first step in a three-part initiative. The overarching goal is to unlock over $275 million in liquidity through asset monetization, the release of restricted cash, and reduced maintenance expenditures. Two subsequent phases are slated to follow throughout 2026.

Strategically, this is not a simple divestment. Plug Power is extracting value from existing assets to sharpen its focus on core operations: hydrogen production and fuel cell deployment. President and Chief Revenue Officer Jose Luis Crespo stated the move strengthens liquidity and enhances financial flexibility.

Details of the “Project Gateway” Transaction

The agreement, announced Thursday, is with Stream Data Centers. The sale encompasses the “Project Gateway” site located within the STAMP industrial park, including the land, infrastructure, and portions of substation assets.

Gross proceeds from the deal are expected to be at least $132.5 million. Depending on the closing timeline and conditions related to asset removal, the total could reach up to $142 million. Stream has provided a $6 million deposit to secure the agreement.

Should investors sell immediately? Or is it worth buying Plug Power?

Closing is targeted for no later than June 30, 2026, contingent upon several factors. These include obtaining regulatory approvals, completing environmental reviews, finalizing asset transfers, and Stream securing a tenant lease with a future occupant. Stream plans to develop a new, water-conserving, air-cooled data center at the location, utilizing the existing infrastructure and power allocations.

Persistent Financial Pressure

This liquidity push does not occur in a vacuum. Plug Power’s financials have shown significant strain, with the company reporting a loss of $2.1 billion against $676 million in revenue over the past twelve months. The asset sale is a visible effort to stabilize the balance sheet amid persistent cash burn.

Further scrutiny arose in February when shareholders approved an amendment to the corporate charter. The number of authorized common shares was doubled from 1.50 billion to 3.00 billion, effective with the filing in Delaware on February 12. This change, coupled with the company’s loss history, brings potential future shareholder dilution into sharper focus.

Market sentiment continues to reflect these challenges. Over a 30-day period, Plug Power shares have declined by 21.44%.

Attention now turns to a key upcoming date: March 2, 2026. On this day, Plug Power is scheduled to release its Q4 and full-year 2025 results. This report is poised to be a critical test, indicating whether cost-cutting measures and operational adjustments are taking hold quickly enough, and whether the liquidity plan—including sales like “Project Gateway”—is providing tangible financial relief.