DigitalOcean Holdings, Inc. announced a plan to repurchase up to $500 million of its 0.00% convertible senior notes due in 2030. The buyback will occur through privately negotiated transactions with a limited number of noteholders.
A concurrent registered direct offering of common stock to participating noteholders will fund the repurchase. This transaction aims to reduce net leverage with minimal expected impact on the company's cash position or outstanding share count. DigitalOcean will retire the repurchased notes upon completion.
Shares of DigitalOcean fell following the announcement. The company noted that hedging and unwinding activities by noteholders related to the deal could affect trading prices. The transaction is expected to close around July 23, 2026, subject to customary conditions.