AI storage firm Backblaze drops after unveiling $150 mln convertible deal
BLZE•Backblaze shares fall after convertible offering announcement
AI storage platform Backblaze BLZE.O shares were down 8.6% at $17.55 in extended trading as it looks to raise capital.
San Francisco-based BLZE announced a private offering of $150 million convertible bonds due 2031.
The company, which has about a $1.2 billion market cap, intends to use the bulk of the net offering proceeds for general corporate purposes and capital expenditures.
It also intends to use some proceeds for capped call transactions, employed to help mitigate potential dilution.
BofA is lead bookrunner for the offering.
In June, BLZE inked a five-year, $335 million AI storage deal with neocloud firm CoreWeave CRWV.O.
BLZE stock closed down 1% at $19.20 on Tuesday. The stock has more than quadrupled over the past six months.
Six of seven analysts rate the stock "strong buy" or "buy," and one rates it "hold"; the median price target is $23, per LSEG data.
