Nebius Shares Slide 9.4% After $3.75B Convertible Debt Offering
Nebius shares tumbled 9.4% intraday after unveiling a $3.75 billion convertible debt offering split between 2031 and 2033 notes to fund data center build-out and custom chip purchases. This follows Meta’s pledge to spend $27 billion over five years on Nebius compute capacity and Nvidia’s $2 billion strategic investment.
1. Convertible Debt Offering
Nebius unveiled a $3.75 billion convertible debt issuance split into senior notes maturing in 2031 and 2033, aiming to tap credit markets for capital needed in AI infrastructure expansion.
2. Use of Proceeds
The company plans to direct funds toward expanding data center capacity and acquiring customized AI chips to support growing demand from enterprise customers.
3. Strategic Partnerships
This financing follows Meta’s commitment to spend up to $27 billion over five years on Nebius compute services and Nvidia’s $2 billion strategic investment in joint AI factory design and infrastructure deployment.
4. Investor Response
Shares declined 9.44% intraday as investors weighed leverage concerns against the growth prospects driven by major tech partnerships.