Key Highlights
- Bloom Energy shares rallied approximately 15% in after-hours trading Monday following Oracle’s expansion of their fuel cell partnership to 1.2 gigawatts of committed capacity.
- On Thursday, Oracle received a warrant allowing it to acquire up to 3.53 million Bloom shares at $113.28 per share — representing a $400 million stake that has appreciated over $300 million within days.
- The companies are now targeting a combined total of up to 2.8 gigawatts of Bloom fuel cell infrastructure for Oracle’s data center network throughout the United States.
- Oracle shares also performed strongly, rising nearly 13% during Monday’s regular session amid a broader rebound in software stocks.
- Bloom’s valuation has surpassed $50 billion, with shares gaining over 100% year-to-date as of Monday’s market close.
Shares of Bloom Energy advanced approximately 6% during Monday’s regular trading hours, then added another 15% gain in the after-hours session. The driver behind this surge was an enlarged power supply partnership with Oracle.
Oracle has now pledged to deploy 1.2 gigawatts of capacity utilizing Bloom’s fuel cell technology, with installations currently in progress and scheduled to extend through 2027. Under the complete framework, Oracle retains the flexibility to expand to as much as 2.8 gigawatts in total.
The partnership between these two corporations began in July, when Bloom announced it would provide power solutions to Oracle‘s U.S.-based data centers within a 90-day timeframe. For that inaugural project, Bloom successfully completed deployment in merely 55 days — beating the deadline significantly.
Mahesh Thiagarajan, executive vice president for Oracle Cloud Infrastructure, commented: “By rapidly deploying Bloom’s reliable, efficient fuel cell energy, we are quickly meeting the demands of our customers across the United States.”
Oracle’s Warrant Shows Significant Paper Gains
Merely four days prior to this expanded agreement announcement, Oracle obtained a warrant enabling the purchase of up to 3.53 million Bloom shares at a strike price of $113.28 apiece — valued at $400 million total. Following Bloom’s stock surge to approximately $203 after the announcement, that warrant now holds an unrealized profit exceeding $316 million.
Oracle maintains the option to exercise this warrant until October 9.
The sequence of events is noteworthy. Oracle secured the warrant as part of an arrangement initially disclosed in October, and within days the partnership expanded — sending its theoretical returns soaring alongside it.
Bloom Benefits from Data Center Energy Demand
Bloom’s fuel cell technology appeals to data center operators because it produces power directly on-site without requiring grid connectivity — enabling considerably faster deployment schedules compared to conventional power infrastructure.
The organization has been strategically positioning fuel cell capacity across an expanding roster of partnerships. This portfolio encompasses utilities such as American Electric Power and data center operators including Equinix and Brookfield Asset Management, alongside Oracle.
Bloom’s shares have been among the market’s top performers. The stock nearly quadrupled throughout 2025 and had already climbed more than 100% this year prior to Monday’s session. The company’s market capitalization has exceeded $50 billion.
Oracle experienced a positive trading day unrelated to the Bloom announcement. Its shares advanced nearly 13% during regular trading as market participants rotated into software companies that had faced pressure from AI-related uncertainties. Despite Monday’s strong performance, Oracle’s stock remains down roughly 20% year-to-date.
Oracle has secured over $100 billion in debt financing to support its AI data center expansion initiative. Bloom’s fuel cell systems represent a critical component of that comprehensive infrastructure strategy, with installations planned for Oracle locations throughout the United States.
As of Monday’s closing bell, Bloom had already secured hundreds of megawatts in fuel cell capacity agreements with various partners, with Oracle now representing one of its most substantial commitments.
