SoFi's Stock Is Falling Today. There Are 1.5 Billion Reasons Why

• SoFi announced plans to merchantability $1.5 cardinal successful communal stock.

• The proceeds volition beryllium utilized for wide firm purposes.

• Investors look wary of SoFi’s plans, fixed that its superior levels were already strong.

• 10 stocks we similar amended than SoFi Technologies ›

SoFi (NASDAQ: SOFI) has been 1 of the banal market's amended performers successful 2025, with shares up by 77% year-to-date. In a nutshell, the fintech disruptor's concern has been increasing rapidly and much profitably than astir experts had predicted.

However, contiguous is different story. On Friday, SoFi's banal fell by astir 9% soon aft the market's opening connected quality of a caller $1.5 cardinal superior raise.

SoFi announced a caller $1.5 cardinal equity offering aft the market's adjacent connected Thursday. It past announced that the caller offering would beryllium priced astatine $27.50 per share, which is importantly beneath the Thursday closing terms of $29.60.

The institution said that it plans to usage the wealth for "general firm purposes, including but not constricted to enhancing superior position, expanding optionality and enabling further ratio of superior management, and backing incremental maturation and concern opportunities."

It's besides worthy noting that the offering volition apt extremity up a small larger, arsenic underwriters person the enactment to bargain an further 15% of SoFi banal supra and beyond the offering amount, truthful it could extremity up bringing successful $1.73 billion, minus concern banking fees.

On the 1 hand, determination are surely immoderate morganatic reasons wherefore the banal has declined aft this news. An equity rise similar this dilutes shareholders, and with already beardown superior levels, it tin beryllium a spot of a head-scratcher arsenic to wherefore SoFi decided to rise caller superior close now.

Having said that, determination are a fewer important things to support successful caput here. First, SoFi has a batch of maturation initiatives going connected close present that could punctual the request for caller capital, specified arsenic the precocious launched cryptocurrency trading service, planetary wealth transportation function, and the quality for members to unfastened some an idiosyncratic and associated SoFi Checking and Savings relationship (previously it was 1 oregon the other). It's besides just to accidental that determination are apt maturation initiatives underway down the scenes that we are not yet alert of.

Second, this isn't precisely unprecedented. In fact, SoFi completed an offering successful the nonstop aforesaid $1.5 cardinal magnitude successful precocious July. The banal initially reacted negatively, but rebounded successful the coming weeks. In fact, adjacent aft today's drop, SoFi shares are trading astir 30% higher than they were astatine the clip of the July offering.