Danish offshore wind developer Orsted announced a $9.4 billion rights issue, equivalent to approximately 50% of its market capitalization, to strengthen its balance sheet amid adverse developments in the U.S. offshore wind market. The equity raising follows setbacks including the halting of a key U.S. project sale, which was impacted by the Trump administration's hostility toward wind power and tightening federal tax subsidy rules. Orsted's shares plunged nearly 30% on the announcement, marking the largest one-day drop in the company's history and driving its stock below its 2016 IPO price. The company's market value has declined substantially from its peak during the 2020-21 ESG bubble, now down about 84%. The rights issue has sparked political backlash in Denmark, where the government is injecting billions into the company. Credit rating agency S&P downgraded Orsted to the lowest investment grade tier, citing increased risks to its U.S. offshore wind business. The company's challenges highlight broader issues facing the offshore wind sector, including policy shifts, supply chain disruptions, and inflationary pressures. Orsted's CFO declined to disclose the exact net debt figure during investor calls. The rights issue is expected to provide financial robustness through 2027. Norwegian oil firm Equinor, which acquired a 10% stake in Orsted for $2.3 billion in October 2024, faces an estimated paper loss of around $1 billion due to the share price decline. The Trump administration's crackdown on wind and solar tax credits continues to pressure the renewable energy industry, with new Treasury Department rules further tightening qualification criteria for federal subsidies over the next two years.