- DigitalOcean said that it intends to use the net proceeds from the offering to make investments in additional infrastructure capacity.
- It also plans to further strengthen its balance sheet by paying down its existing Term Loan A, and use proceeds for general corporate purposes.
- DigitalOcean is the Agentic Inference Cloud built for AI-native and Digital-native enterprises scaling production workloads.
DigitalOcean (DOCN) shares plunged nearly 9% during extended hours of trading on Tuesday after it announced that it has commenced an underwritten public offering of $700 million of its shares.
Additionally, DigitalOcean intends to grant the underwriters a 30-day option to purchase up to an additional $105 million of shares.
The company in a statement said that the offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.
Purpose To Use Proceeds
DigitalOcean said that it intends to use the net proceeds from the offering to make investments in additional infrastructure capacity, beyond what it has previously communicated, to support customer demand for DigitalOcean’s cloud or AI platform.
It also plans to further strengthen its balance sheet by paying down its existing Term Loan A, and use proceeds for general corporate purposes. DigitalOcean is in advanced discussions to secure this additional data center capacity to support its growth, it said.
What Is DigitalOcean
DigitalOcean is the agentic inference cloud built for AI-native and digital-native enterprises scaling production workloads. The platform combines production-ready GPU infrastructure with a full-stack cloud to deliver operational simplicity and predictable economics at scale. The company has more than 640,000 customers.
Retail Reaction
Retail sentiment around DOCN trended in ‘bullish’ territory amid ‘high’ message volume.
Shares in the company have jumped 75% year-to-date.