AI Infrastructure Growth Candidate Faces Plunge After Capital Increase, 1 Trillion Won Market Value Vanishes in a Day

DigitalOcean Holdings (DOCN) closed at $75.79 on the New York Stock Exchange on the 9th, down 13.05% from the previous day. Trading volume topped 6.78 million shares, and its market capitalization fell by about $800 million—roughly KRW 1.1 trillion—in a single session to approximately $6.9 billion (about KRW 9.4 trillion). This represents a sharp pullback in just a few days following its recent 52-week high in the low $90s.

Recently, DigitalOcean completed a large rights offering of approximately 10.39 million shares, raising between $700 million and $800 million. The resulting dilution has weighed on investor sentiment. Nevertheless, leading brokerages including Bank of America have maintained “Buy” ratings and raised their price targets to $107, citing the company’s growth prospects and expanded investments in AI infrastructure.

DigitalOcean is an infrastructure-as-a-service (IaaS) provider that serves small and medium-sized businesses, developers, and startups. It has grown by emphasizing low prices and ease of use. More recently, the company has strengthened its position as an AI-focused cloud provider through the launch of an inference cloud for AI workloads, the GradientAI platform, and expanded infrastructure capacity.