Former House Speaker Nancy Pelosi disclosed investments totaling between $3 million and $12 million in Bloom Energy, a company that develops fuel cell systems crucial for AI data centers. The disclosures were made weeks before Bloom Energy's stock price significantly increased following the announcement of its inclusion in the S&P 500 index.
According to transaction reports signed by Pelosi on August 21, her household account made substantial purchases of Bloom Energy stock and call options in late July. On July 24, the account bought 10,000 shares and 100 call options, valued between $1 million and $5 million. Another purchase on July 28 included 5,000 shares and 100 call options, worth an additional $1 million to $2 million.
These trades occurred shortly after a period of stock downturn and on the same day Bloom Energy reported strong earnings, including 165% annual revenue growth. The company's stock saw a significant rise in the following days. Weeks later, on September 4, Bloom Energy was announced as an addition to the S&P 500, which further boosted its stock, leading to a nearly 40% increase in the five days preceding the report. The stock's price on July 24 was $184.89 per share and on July 28 was $166.84 per share. By Tuesday afternoon of the report's publication, the stock was trading at $282.50 per share.
Bloom Energy, based in San Jose, California, has benefited from the increasing demand for power from AI data centers. The company's stock has more than doubled in the current year and has risen over 400% in the past 12 months, with a market capitalization nearing $83 billion.
Pelosi has previously denied accusations of insider trading and has expressed support for a ban on congressional stock trading, though her household has continued to report significant stock transactions. A spokesperson for Pelosi stated that the Speaker does not own stocks and has no involvement in transactions. Bloom Energy servers sit outside the Bloom Energy factory.
This is not the first time Pelosi's family's trading activities have drawn scrutiny. In 2023, her portfolio reportedly yielded a 65% return, and her husband, Paul Pelosi, engaged in stock trades valued at $38 million in the weeks before President Trump's inauguration. In response to such activities, Senator Josh Hawley introduced legislation in early 2023 called the Preventing Elected Leaders from Owning Securities and Investments Act, or the PELOSI Act, proposing a ban on stock trading for members of Congress. A tracker app monitoring congressional trading activity reportedly shows over 20,000 users, or "copiers," trading an estimated $44 million based on these transactions.
Members of Congress and their families are required by the 2012 STOCK Act to disclose financial holdings and transactions. Trades exceeding $1,000 must be reported within 45 days of the transaction or 30 days of being notified, whichever occurs first. Penalties for late filings are minimal, with first-time fines starting at $200.