Key Takeaways
- 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 contracted capacity.
- Last Thursday, Oracle secured a warrant to acquire up to 3.53 million Bloom shares at $113.28 per share — representing a $400 million position that has gained more than $300 million in value within days.
- The partnership between the two companies now encompasses plans for up to 2.8 gigawatts of Bloom fuel cell installations at Oracle data centers nationwide.
- Oracle shares posted impressive gains as well, surging nearly 13% in regular session trading amid a broader rebound in software stocks.
- Bloom’s valuation has surpassed $50 billion, with shares more than doubling year-to-date through Monday’s market close.
Bloom Energy experienced a strong trading session on Monday, with shares rising approximately 6% during regular hours before adding another 15% surge in extended trading. The driving force behind this movement was an enhanced energy partnership agreement with Oracle.
Oracle has pledged to deploy 1.2 gigawatts of capacity utilizing Bloom’s fuel cell technology, with installations currently in progress and scheduled to continue through 2027. The comprehensive arrangement includes provisions allowing Oracle to expand the deployment up to 2.8 gigawatts in total.
The partnership between these companies dates back to July, when Bloom announced it would supply power to Oracle’s U.S. data center operations within a 90-day timeframe. In that inaugural phase, Bloom successfully completed the delivery in merely 55 days — beating the deadline by over a month.
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 Position Shows Substantial Gains
Merely four days prior to this partnership expansion announcement, Oracle obtained a warrant allowing the purchase of up to 3.53 million Bloom shares at a strike price of $113.28 each — amounting to a $400 million investment. Following Bloom’s stock surge to nearly $203 after the announcement, this warrant position is currently showing an unrealized profit exceeding $316 million.
Oracle has until October 9 to execute the warrant.
The sequence of events is noteworthy. Oracle acquired the warrant through an agreement initially disclosed in October, and shortly thereafter the partnership expanded — propelling its theoretical return significantly higher.
Bloom Capitalizes on Data Center Energy Demand
Bloom’s fuel cell technology appeals to data center operators due to its capability to produce power directly on-site without requiring grid infrastructure — enabling significantly faster deployment schedules compared to conventional power solutions.
The company has been strategically deploying fuel cell capacity across an expanding network of collaborators. This portfolio encompasses utility companies such as American Electric Power and data center operators including Equinix and Brookfield Asset Management, alongside Oracle.
Bloom’s shares have emerged as among the market’s top performers. The stock nearly quadrupled during 2025 and had already gained over 100% in the current year prior to Monday’s session. The company’s market capitalization has exceeded $50 billion.
Oracle experienced strong performance independent of the Bloom announcement. The stock advanced nearly 13% during regular trading hours as market participants returned to software equities that had faced pressure due to AI-related uncertainties. Despite Monday’s rally, Oracle shares remain down roughly 20% year-to-date.
Oracle has secured more than $100 billion in financing to support its AI data center expansion initiative. Bloom’s fuel cell systems represent a critical component of this broader infrastructure strategy, with installations planned for Oracle locations throughout the United States.
As of Monday’s closing bell, Bloom had already secured contracts for hundreds of megawatts of fuel cell capacity across various partners, with Oracle now representing one of its largest commitments.
