U.S. Cloud Stocks Plunge 6% Following $700 Million Capital Raise Announcement

DigitalOcean Holdings Inc. (NASDAQ: DOCN) saw its share price fall 5.9% on the New York Stock Exchange, closing at $76.62. The drop erased roughly $400 million in market capitalization—about ₩530 billion—bringing the company’s total market value to around $7.0 billion (≈₩9.5 trillion). Trading volume reached 3.01 million shares, above the recent average.

Last week, DigitalOcean announced a proposed public offering of approximately $700 million (≈₩940 billion) in common stock to strengthen its balance sheet and subsequently entered into a purchase agreement to issue 10.39 million shares at $74.40 each. Although the company’s fourth-quarter 2025 results, released in February, beat analysts’ revenue and earnings estimates and management raised growth forecasts for 2026 and 2027, concerns over dilution from the large offering have weighed on the stock in the short term.

DigitalOcean, a U.S. cloud provider targeting developers and small-to-mid-sized businesses, offers cloud infrastructure and an AI inference platform. Branding itself as an “agentic inference cloud,” the company is aggressively pursuing AI workload demand. In 2025, it generated approximately $910 million in revenue and, buoyed by rapid growth in AI customer revenue and an expanding large-customer base, plans to sustain double-digit growth beyond 2026.