Cloud computing provider DigitalOcean has announced the offering of up to $550 million in convertible senior notes.

Due to expire in 2030, the offering was increased from an initial $500m after just one day. The offering will close to purchasers on August 14, 2025.

The company expects to raise around $532.4m through the notes, rising to as much as $605.6m should purchasers exercise their option to buy more notes.

The notes will be used to pay the $73.81m cost of the capped call transactions, and to refinance the existing $1.13 billion in notes, which will mature in 2026. If purchasers take up the option for additional notes, DigitalOcean says this will go to "additional capped call transactions and the remainder for general corporate purposes, working capital, operating expenses, and capital expenditures, which may include additional repurchases of the 2026 notes."

Concurrent with the offering, DigitalOcean has adopted a new $100m stock repurchase program set to expire on July 31, 2027.

DigitalOcean is a cloud provider that was founded in 2011, and operates out of 15 global data centers.

In its most recent earnings, the company saw Q2 2025 revenues of $219m, an increase of 14 percent year over year, while the Annualized Revenue Run Rate similarly grew 14 percent up to $875m.

Adjusted EBITDA for the quarter was $89m, an increase of 10 percent year-over-year, and the adjusted EBITDA margin was 41 percent.

The quarter saw DigitalOcean teaming up with AMD to offer the AMD Instinct GPUs as "DigitalOcean GPU Droplets" (instances) for AI workloads. The company also launched an AI platform dubbed DigitalOcean Gradient.

While a much smaller cloud provider than the typical "big three" US companies, DigitalOcean has been working to leverage the AI opportunity. In July 2023, the company acquired cloud and AI start-up Paperspace, and began offering access to Nvidia H100s in January 2024. Towards the latter end of the year, DigitalOcean launched Bare Metal GPUs for its customers.