SoFi’s stock dropped nearly 6% in after-hours trading on Thursday following the fintech firm’s announcement of a new $1.5 billion stock offering.

The company, known for its online lending services and expanding suite of digital banking products, said in a press statement that the capital raised will support a range of corporate objectives. These include strengthening its overall financial position, increasing strategic flexibility, improving capital management efficiency, and financing new business initiatives and growth opportunities.

This move comes at a time when SoFi’s valuation has surged significantly. The company’s market capitalization has almost doubled since the start of 2025, and its share price has risen more than sixfold compared with the end of 2022. Despite this strong rally, the announcement of a large stock sale typically pressures a company’s share price because issuing new shares reduces the value of existing investors’ holdings.

In its third-quarter earnings report released in late October, SoFi highlighted continued momentum in its operations. Revenue climbed 38% year over year to reach $961.6 million, while net income more than doubled to $139.4 million. The company also reported holding $3.25 billion in cash and cash equivalents, underscoring its efforts to maintain liquidity as it pursues further expansion.