Plug Power $PLUG announced a new agreement with Amazon $AMZN to supply 10,950 tons of liquid hydrogen to the online retailer each year beginning in 2025.
Amazon also received warrants to buy up to 16 million Plug Power shares as part of the deal. Amazon agreed to spend $2.1 billion on Plug Power products over the seven-year term of the contract in order for its warrants to fully vest.
The online retailer uses hydrogen power to power 30,000 forklifts or 800 long-haul trucks. Amazon also has an order for 100,000 electric delivery vehicles with Rivian Automotive Inc.
Plug said the Amazon deal will help the company grow towards its goal of $3 billion in revenue in 2025.
$PLUG shares up 9% today on the news.
Source: CNBC
Position: Credit spread to make up to 22.2% (43.0% annualized) and PLUG can fall 37% before breakeven.
Buy 2 $27.5 call, Sell 1 $30 call, Sell 1 $32.5 call
Sell 2 $17.5 puts
Exp 3/17/23
