Danish offshore wind developer Orsted announced plans for a $9.4 billion rights issue, equivalent to approximately 60 billion Danish kroner, to strengthen its balance sheet amid setbacks in its U.S. offshore wind projects. The equity raising amounts to about 50% of the company's market capitalization, which has plunged following the announcement. Orsted's shares fell sharply, dropping as much as 32% in a single day, marking the largest one-day decline in the company's history and pushing the stock below its 2016 initial public offering price. The share price has declined by roughly 84% from its peak during the 2020-21 ESG market surge. The rights issue was prompted by adverse developments in the U.S. offshore wind market, including halted project sales due to the Trump administration's hostility toward wind power. This has led to increased political backlash in Denmark over the government's plan to inject billions into Orsted. The company's market cap fell to around $13.2 billion, while the $9.4 billion capital raise represents more than 70% of this value. The rights issue aims to provide financial robustness through 2027. Investors, including Norwegian oil company Equinor, which acquired a 10% stake in Orsted for about $2.3 billion in October 2024, have suffered substantial paper losses due to the stock's decline. The situation reflects broader challenges in the wind power industry, including political risks, supply chain disruptions, and inflationary pressures.