Deepening AI Capacity Addition Opportunity

Research evidence excerpt

Deepening AI Capacity Addition Opportunity

Infrastructure & AI Software

DigitalOcean Holdings, Inc. (DOCN)

EQUITY RESEARCH Company Update

July 15, 2026

Deepening AI Capacity Addition Opportunity Price: $126.30

Price Target: $177.00 DigitalOcean announced plans to retire up to $500M of its 2030

Rating: Overweight convertible notes through privately negotiated repurchases funded by

Key Statistics: a concurrent equity issuance, a transaction we expect to have limited

Symbol NYSE: DOCN cash, dilution, or Street EPS impact. More importantly, the resulting

52-Week Range 25.56 - 187.50 balance sheet improvement, combined with rapidly expanding EBITDA and

Market Cap 13,181.2 equipment financing capacity, materially increases financial flexibility to

ADV (3 mo) 3,774,383

fund additional AI infrastructure investments and add to MW capacity EV ($M) 16,290

Shares Out (M) 104.4 expansion over the intermediate term. We reit our OW rating and

$177 PT on DOCN shares and continue to view DigitalOcean as a

Research Analysts: key beneficiary of accelerating inference-related demand in a supply

Thomas Blakey, CFA constrained environment with relative NT catalysts related to continued

617-443-4487 capacity additions alongside a differentiated end-to-end cloud and open-

Thomas.Blakey@cantor.com source focused AI software solution set.

Michael Vidovic

224-704-0733

Michael.Vidovic@cantor.com Earlier today, DigitalOcean announced in a press release the company

Matthew Park intends to retire up to $500M of its outstanding 0.00% convertible

212-915-1835 senior notes due 2030 through privately negotiated cash repurchases from

Matthew.Park@cantor.com existing noteholders. Rather than funding the repurchase with existing

liquidity, the company will simultaneously issue new common stock in REV ($M)