Waves of panic selling have hit Danish wind giant Ørsted after it blamed the United States for its mounting financial woes, leading to a historic stock crash. The sell-off was triggered by the company’s announcement that it needs to raise $9 billion from shareholders to survive the current market.
The company’s woes are rooted in its inability to finance its US projects. It told investors its business model was “derailed” because the Trump administration’s anti-wind policies have made its American assets unsellable, blocking a planned stake sale in its eastern seaboard development.
The panic was intensified by the broader industry climate of fear. The administration’s shocking decision to halt an approved project by rival Equinor sent a clear message that no company was immune to political interference, making the US a high-risk zone for investors.
The Danish government is stepping in to back the $9 billion rights issue, a move aimed at restoring confidence and providing “financial robustness.” However, the market remains deeply unsettled by what Ørsted’s CEO has called an “extraordinary situation.”