SoFi shocks with $2.85 billion additional issuance! Goldman Sachs backs crypto business expansion, causing a stir

US fintech platform SoFi Technologies announced that it is partnering with Goldman Sachs for a new round of stock issuance, aiming to raise up to $2.85 billion. The new shares will be offered to institutional investors at a price range of $27.50 to $28.50 per share. The funds raised will primarily be used to enhance capital adequacy under its banking license, support the expansion of high-growth new businesses such as cryptocurrency trading, and seize potential M&A opportunities.

Goldman Sachs Leads Record $2.85 Billion Equity Financing

This is SoFi’s largest equity financing since going public via SPAC in 2021. Goldman Sachs is serving as the lead underwriter for this offering, which in itself sends a strong signal. As one of Wall Street’s top investment banks, Goldman Sachs has extremely stringent standards for its projects and typically only serves companies with solid fundamentals and clear prospects. Goldman’s willingness to lead this $2.85 billion deal shows its recognition of SoFi’s business model and growth potential.

According to people familiar with the matter, the shares will be offered to institutional investors at a price range of $27.50 to $28.50 per share. This pricing range has been carefully calculated to provide institutional investors with sufficient discount to ensure subscription interest, but not so much as to harm existing shareholders’ interests. Based on the December 3 closing price of $29.98, the discount is between 5%-8%, which is within the standard market range for such offerings and in line with industry practices.

If calculated at the upper limit of $28.50 per share, the $2.85 billion target implies the issuance of approximately 100 million new shares. Compared to SoFi’s current float of approximately 1.1 billion shares, this offering would result in about 9% equity dilution. While this dilution rate is not insignificant, considering the use of funds and the company’s current high-growth stage, market reaction may be relatively mild. Historical data show that fundamentally strong tech companies can usually absorb dilution pressure and reach new highs within 1 to 3 months after an offering.

As the lead underwriter, Goldman Sachs is not only responsible for pricing and placement, but will also leverage its vast institutional client network to ensure a successful offering. Goldman’s clients include the world’s largest hedge funds, mutual funds, and sovereign wealth funds, whose participation will bring SoFi high-quality long-term shareholders, rather than short-term speculative capital. In addition, Goldman’s endorsement also sends a vote of confidence in SoFi’s future prospects to the market.

Q3 Earnings Surge 68%, Validating Diversification Strategy

On October 28, 2025, SoFi’s latest quarterly earnings report provided strong fundamental support for this offering. Adjusted net revenue reached $949.6 million, a year-over-year increase of 68% and a record high. This growth rate is especially impressive in the current macro environment, as most traditional banks and fintech companies are facing growth pressures. SoFi’s ability to achieve such high growth validates the effectiveness of its diversification strategy.

Membership surpassed 9.5 million, up 42% year-over-year, revealing SoFi’s robust user acquisition capability. Even as customer acquisition costs continue to rise industry-wide, SoFi has maintained over 40% membership growth, demonstrating its brand appeal and product competitiveness. More importantly, the quality of these new members is also improving, not just the quantity. The average number of products used per member increased from 2.1 last year to 2.4, showing cross-selling strategies are working.

Assets under management reached $18.2 billion, doubling year-over-year, which is proof of the rapid growth of SoFi’s wealth management and investment advisory business. This figure is striking for a company that has only held a banking license for a few years, indicating rapidly increasing trust among younger generation investors in the SoFi platform. The expansion of asset management not only brings management fee income, but more importantly, increases customer stickiness and lifetime value.

SoFi Q3 Financial Highlights

Revenue Explosion: Adjusted net revenue of $949.6 million (YoY +68%), beating analyst expectations of $898.2 million

User Surge: 728,000 new members (expected 653,000), total membership surpassing 9.5 million milestone

Deposits Double: Deposit balance of $23.8 billion (YoY +91%), banking business scale expanding rapidly

CEO Anthony Noto stated on the earnings call: “Diversified revenue outside of our lending business is materializing quickly, and that is the core driver of our record Q3 performance.” This is a key statement, as it shows SoFi has successfully moved beyond dependence on a single business line, establishing a diversified revenue engine. While lending remains important, wealth management, banking deposits, and the soon-to-launch crypto trading are becoming new growth drivers.

Crypto Business Launch Imminent, Targeting $100 Billion Market

In November, SoFi officially announced that its SoFi Crypto is now open for priority access sign-ups, allowing users to buy and sell dozens of major cryptocurrencies directly within the app. This marks the company’s transformation from a “student loan refinancing” business to a full-range digital financial platform. A significant portion of the $2.85 billion raised will be invested in crypto business infrastructure, compliance costs, and marketing.

SoFi’s entry into the crypto market is carefully timed. The Trump administration’s friendly stance on cryptocurrencies reduces regulatory risk, and traditional financial institutions are rapidly increasing their acceptance of crypto assets. More importantly, SoFi has 9.5 million high-net-worth young users, with strong overlap with the user base of the largest compliant US crypto exchange and Robinhood. These users tend to be open to crypto and have already built trust with SoFi’s platform.

SoFi’s competitive advantage lies in its combination of “compliance licensing + bank-level risk control + zero commissions.” As a licensed bank, SoFi enjoys a natural compliance edge and can offer higher security than pure crypto exchanges. Bank-level risk controls can effectively prevent money laundering and fraud, which is especially important for institutional clients. The zero-commission strategy directly targets Robinhood, potentially enabling rapid market share capture. The US crypto trading market exceeds $100 billion; even if SoFi captures just 5%-10%, it would generate billions in new revenue.

Two other major uses of the funds are equally noteworthy. Enhancing capital adequacy under the banking license is a regulatory requirement; sufficient capital will allow SoFi to expand its lending and deposit businesses. Potential M&A opportunities are even more imaginative—$2.85 billion in dry powder enables SoFi to acquire fintech companies with complementary technology or user bases, accelerating market consolidation. As the fintech industry enters a reshuffling period, a well-capitalized SoFi could become an integrator rather than an integrated target.

Balancing Equity Dilution and Long-Term Value

If calculated at the $2.85 billion cap and $28.50 issue price, this offering will generate about 100 million new shares, resulting in around 9% dilution. This level of dilution is not negligible for existing shareholders and could put short-term pressure on the stock price. After an offering is announced, the share price typically drops 3%-8% on the first day, reflecting the market’s immediate reaction to dilution.

However, the key is how the funds are used. If the proceeds are used to cover losses or repay debt, such dilution is purely negative. But SoFi has made it clear the funds will go to high-growth new businesses and strategic M&A, which have high return potential. If the crypto business is successful, it could contribute hundreds of millions in revenue within 2-3 years. Improved capital adequacy will allow the lending business to scale up, producing a leverage effect. M&A could bring synergies and increased market share.

From a ROE (return on equity) perspective, the long-term impact of this offering may be positive. SoFi’s business has entered a phase of accelerating profitability, and according to management guidance, adjusted net profit could surpass $1 billion in 2026. If the $2.85 billion in new capital can generate a 15%-20% annualized return (not uncommon for high-growth fintechs), it will create value far exceeding the loss from dilution.

Historical data offer perspective. Fundamentally strong tech companies typically see their stock absorb dilution within 1-2 months after an offering, then hit new highs as new business progress and earnings deliver. The largest compliant US crypto exchange’s 2024 offering is a classic case—its stock fell 12% post-offering, but rose over 40% three months later as the crypto market rebounded and results improved.