Amazon has been granted warrants allowing it to purchase up to $340 million worth of Generac Holdings stock, triggering a surge of more than 40% in the power company’s shares during extended trading on Wednesday.
According to a securities filing, the warrants give Amazon the option to acquire approximately 1.69 million Generac shares at an exercise price of $200.93 per share. The total potential investment cap under this agreement is valued at $8 billion.
The financial instrument is part of a broader commercial agreement in which Generac will supply backup power generators for Amazon’s data center infrastructure. The filing indicates that initial equipment deliveries are scheduled for 2027 and 2028, with an expected total value of $2.4 billion.
The warrants represent nearly 3% of Generac’s outstanding shares. As of Wednesday’s market close, the company held a market capitalization of approximately $10.3 billion.
Backup generators running on fossil fuels for data centers? I wish this deal included a commitment to switch to clean energy sources.
Why warrants at $200? That seems like a lot when the stock just pumped. Did they negotiate poorly?
That $2.4 billion initial contract is huge for Generac, but the $8 billion total ceiling shows how desperate Amazon is for reliable power.
Wait, so the power company that makes home generators is now critical AWS infrastructure? The AI boom is getting weird.
Generac stock up 40% is insane. I hope Amazon uses these warrants or it gets messy for shareholders.