1. Nebius launches convertible notes and share offering to grow its business. 2. Long-term contracts like Microsoft's are key growth drivers. 3. Funds will enhance computing power and expand data center footprint. 4. Company aims to minimize shareholder dilution and manage debt. 5. Strong balance sheet supports aggressive growth initiatives for 2026.
The issuance of convertible notes and share offerings indicate strong capital strategies for growth. Historical fast expansions in tech have often seen positive stock responses, suggesting potential price uplift.
The article directly discusses Nebius's growth plans and funding initiatives, which could affect investor confidence and stock performance significantly.
The initiatives outlined aim for growth in 2026 and beyond, suggesting lasting effects rather than short-term fluctuations.
Nebius Group N.V. (NASDAQ:NBIS) ("Nebius" or the "Company"), a leading AI infrastructure company, today announced the launch of an offering of convertible notes and a concurrent offering of Class A shares to support the accelerated future growth of its core business.
Our core AI cloud business is growing rapidly, and we continue to be laser focused on developing this business. We view long-term contracts such as the one we announced this week with Microsoft as important incremental sources of growth.
We intend to use the net proceeds from the offerings we have announced today, if consummated, to finance the continuing growth of our business, including the acquisition of additional compute power and hardware, securing strategic high-quality and well-located land plots with reliable providers, the expansion of our data center footprint, and for general corporate purposes. We believe this will enable us to aggressively grow our core business in 2026 and beyond as we aim to scale our global data center portfolio, including through new greenfield sites, and the expansion of our customer base, from AI native tech startups to larger enterprises.
As we continue to access the capital that we need to capture the substantial growth opportunity ahead, we will remain focused on mitigating shareholder dilution and maintaining appropriate levels of debt on favorable terms.
Our strong balance sheet and our recently announced agreement with Microsoft give us an opportunity to further optimize our capital structure and cost of funding. For example, we expect to finance the associated capital expenditures through a combination of cash flows under the arrangement and the issuance of debt secured against the contract and related infrastructure, at terms that reflect the credit quality of the counterparty.
We remain focused on diversifying our funding sources and believe that our June 2025 convertible notes, and the convertible notes we are offering today, enable us to access significant pools of capital. Our convertible notes have been designed to limit potential shareholder dilution through high effective conversion premium levels, and to minimize financing cash costs while preserving flexibility to manage our balance sheet proactively through tailored call features.
Each time we have accessed the capital markets, investors have supported our efforts to move at a faster pace to expand our capacity, enabling us to more effectively meet the strong and growing demand for AI compute. We believe our overall financing approach will position us well to accelerate the growth of our core business as we continue to build one of the world's leading AI infrastructure companies.
About Nebius Group
Nebius Group is a technology company building full-stack infrastructure to service the high-growth global AI industry. Headquartered in Amsterdam and listed on Nasdaq, Nebius Group has a global footprint with R&D hubs across Europe, North America and Israel.
Nebius Group's AI-native cloud platform has been built for intensive AI workloads. With a full stack of purposefully designed and tuned proprietary software and hardware designed in-house, Nebius Group gives AI builders the compute, storage, managed services and tools they need to build, tune and run their models and applications.
Nebius Group also has additional businesses that operate under their own distinctive brands:
Nebius Group also holds equity stakes in other businesses including ClickHouse and Toloka.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. All statements contained in this press release other than statements of historical facts, including, without limitation, statements regarding our ability to successfully complete the offerings described herein, our future financial and business performance, our business and strategy, expected growth, planned investments and capital expenditures, capacity expansion plans, anticipated future financing transactions and expected financial results, are forward-looking statements. The words "anticipate," "believe," "continue," "estimate," "expect," "guide," "intend," "likely," "may," "will" and similar expressions and their negatives are intended to identify forward-looking statements.
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