Nebius Group Shares Drop on $4.5 BillionConvertible Note Offering and Share Exchange Plan
Shares of Nebius Group (NASDAQ:NBIS) fell by 13% to $215.52 in early Wednesday trading after the AI cloud company announced a $4.5 billion convertible senior note offering along with a share exchange plan for existing convert holders. The move has triggered concerns over dilution and potential sell-offs of Class A shares, as management warned that participating holders may offload stock or unwind hedge positions. Nebius spent $5.66 billion on capital expenditures in Q2 2026 alone despite holding $8.04 billion in cash at the end of June. The funds from this offering are expected to support continued data center expansion, GPU procurement, and other corporate needs as Nebius maintains a rapid AI cloud revenue growth rate of over 514%. CoreWeave (CRWV) also dipped slightly amid sector-wide dilution fears. The announcement comes at a time when investors remain cautious about capital-intensive strategies in the AI infrastructure space. The market is reacting to both the new convertible offering and the potential for increased selling pressure from existing convert holders, which could further depress share prices.
