Orsted Shares Tank as $9.4B Cash Grab Rattles Markets

European markets ended the day with a mixed bag Monday, but all eyes were on Copenhagen, where Danish renewable energy giant Orsted saw its stock nosedive nearly 31% after announcing a massive $9.4 billion rights issue.

The offshore wind powerhouse says it needs the cash to keep its US Sunrise Wind project afloat after potential co-investors bolted, spooked by President Donald Trump’s open hostility toward wind farms. The 60 billion Danish kroner capital raise amounts to almost half of Orsted’s market value as of last week — and sent the stock to a record low.

“This is an extraordinary situation,” CEO Rasmus Errboe admitted.

He pointed to US political headwinds layered on top of years of inflation, supply chain messes, and rising interest rates. Two-thirds of the funds will go directly into finishing Sunrise Wind, a 924-megawatt project off New York’s coast. The rest is earmarked to shore up Orsted’s finances and keep 8.1 gigawatts of projects on track through 2027.

The trouble hit a tipping point after the Trump administration abruptly halted work on Equinor’s neighboring Empire Wind project in April. Although the order was reversed a month later, the scare rattled investors and banks, turning the US offshore wind market into risk territory overnight.

Orsted’s business model has long relied on building big and then selling stakes to investors eager for green energy exposure. But in recent years, the company has been forced to scrap US and UK projects, absorb hefty write-downs, and navigate shifting subsidy policies.

“This was not just the right move, it was the only option left,” said Sydbank analyst Jakob Pedersen, noting that the company’s finances were “in really bad shape.”

The Danish government — which owns just over 50% of Orsted — will buy its proportional share of the new stock, keeping majority control. But not everyone’s thrilled: right-wing lawmakers questioned why Danish taxpayers should bankroll a troubled US project.

Jefferies analysts said the fundraising could de-risk the balance sheet but warned that shareholder dilution will be “substantial.” Orsted also plans to raise more than 35 billion kroner from selling its European onshore wind assets and unloading stakes in offshore projects in Taiwan and the UK.

Meanwhile, European stocks broadly drifted. The Stoxx 600 slipped 0.06%, the FTSE 100 climbed 0.4%, Germany’s DAX slid nearly 0.4%, and France’s CAC 40 fell 0.6%.

For Orsted investors, though, Monday wasn’t “mixed” at all — it was a straight-up wipeout.

CNBC, the New York Times, and Reuters contributed to this report.