Skip to content
Finance — Tech's Latest Innovations — Unveil the Latest Gadgets

IT Companies Raise $5B in August: Debt Dominates as Equity Slows

Debt offerings took the lead in August, raising $3.63 billion. Equity offerings contributed $1.32 billion, a shift from the previous months' highs. IT companies have raised $34.41 billion in application software alone this year.

,   and  Administrator
1 min read
This is the wooden table with a monitor,key board,mouse,laptop,computer,speaker,photo frame,a cup...
This is the wooden table with a monitor,key board,mouse,laptop,computer,speaker,photo frame,a cup and some objects placed on it. These are the papers attached to the wall. These are the book arranged in an order and placed inside the rack. This is some object which is grey in color. I can see apple logo here. This is the CPU and some electronic devices placed under the table.

IT Companies Raise $5B in August: Debt Dominates as Equity Slows

August saw a significant drop in capital raised by IT companies, with a total of $5 billion, down from $13.33 billion in July. This figure marks the second-lowest monthly total of the year for North American IT companies.

The decrease can be attributed to a shift in funding methods. Debt offerings dominated August, raising $3.63 billion, while common equity offerings contributed $1.32 billion. This change follows three consecutive months where capital raises exceeded $10 billion, largely driven by equity offerings.

DigitalOcean Holdings raised $625 million through senior unsecured notes due 2030, with proceeds primarily allocated to capped call transactions and corporate needs. Meanwhile, TeraWulf, a data center operator and bitcoin miner, completed a $1 billion convertible senior notes offering, netting $975.2 million for expansion and corporate purposes. Broadcom and Synopsys also raised significant amounts through debt sales in March.

Year-to-date, application software companies have raised the most capital at $34.41 billion, followed by semiconductor firms at $21.34 billion and systems software at $11.89 billion. Strategy led the largest capital offering of 2025 so far with a $2.52 billion preferred securities deal.

Despite the drop in August, IT companies have raised substantial capital this year. The shift towards debt offerings suggests a strategic focus on managing cash flow and reducing equity dilution. As the year progresses, it will be interesting to see if this trend continues and how it impacts the sector's growth and innovation.

Read also:

Related

Latest