SoFi shares tumbled nearly 6% in after-hours trading Thursday after the fintech company surprised investors with a $1.5 billion stock offering announcement. The move comes despite the company's market cap almost doubling this year, raising questions about timing and dilution concerns among shareholders.
SoFi Technologies just threw cold water on its red-hot stock rally. The fintech darling's shares plunged nearly 6% in after-hours trading Thursday after the company announced a massive $1.5 billion stock offering that caught investors off guard.
The timing seems puzzling given SoFi's spectacular run this year. The company's market cap has nearly doubled in 2025 alone, while its stock price has skyrocketed more than sixfold since the end of 2022. That meteoric rise apparently gave management the confidence to tap public markets for a significant cash infusion.
According to the company's press release, SoFi plans to use the proceeds for "general corporate purposes, including but not limited to enhancing capital position, increasing optionality and enabling further efficiency of capital management, and funding incremental growth and business opportunities."
That's corporate speak for keeping options open, but it highlights how flush with opportunities SoFi believes it is right now. The company has been aggressively expanding beyond its core student loan refinancing business into personal loans, mortgages, investing, and most recently, cryptocurrency trading.
CEO Anthony Noto has been vocal about SoFi's evolution into a comprehensive financial services platform. During a recent CNBC interview, Noto positioned blockchain and crypto as "a supercycle technology just like AI," signaling the company's ambitious tech-forward vision.
The market's negative reaction isn't surprising - stock offerings typically trigger selling pressure as existing shareholders face dilution. Every new share issued reduces the ownership percentage of current investors, which explains why even successful companies see their stock prices dip on offering news.
But SoFi's fundamentals tell a compelling growth story. The company's third-quarter earnings released in late October showed revenue jumping 38% year-over-year to $961.6 million, while net income more than doubled to $139.4 million. The company also reported $3.25 billion in cash and equivalents, raising questions about why it needs additional capital.
