- Nebius completed a $5.75 billion convertible senior-notes offering and an $800 million debt-for-equity exchange to finance data centers and GPU purchases.
- Convertible-arbitrage hedging creates mechanical short pressure, while Nvidia's 9.3% stake lockup expires September 11, creating a potential additional supply event.
- Nebius reported Q2 revenue of $582.3 million, up 454% year over year, but posted a $0.68 per-share loss as interest expense rose 2,381% to $119.1 million.
- NBIS fell 10% after the offering plans were announced as investors focused on higher debt and potential equity dilution.
Quotes
“The market reacted negatively to news of Nebius' upsized private offering plans.”