Why Nebius Is Raising $3.7 Billion Just Weeks After Microsoft Deal

Group 1 - Nebius Group N.V. has priced a $1 billion offering of Class A ordinary shares at $92.50 per share, with a closing date expected on September 15, and underwriters have a 30-day option to purchase an additional $150 million of stock [1] - The company also priced $2.75 billion in convertible senior notes, with maturities in 2030 and 2032, aiming to raise nearly $3.7 billion in total proceeds [1][2] - The debt issuance includes $1.375 billion of 1.00% notes due 2030 and $1.375 billion of 2.75% notes due 2032, with an option for purchasers to buy up to $412.5 million more in combined notes, indicating strong demand [3] Group 2 - The funds raised will be used to expand data center capacity, secure land with reliable power access, acquire more compute hardware, and for general corporate purposes [2] - The recent financing follows a significant rally in Nebius shares after announcing a $17.4 billion contract with Microsoft to supply GPU infrastructure capacity over five years, which could increase to $19.4 billion with options [3][4] - This agreement is expected to generate cash flow to support capital expenditures, positioning Nebius as a critical infrastructure partner for large-scale AI projects and enhancing investor confidence in its long-term growth [4] Group 3 - As of the latest check, Nebius shares were trading higher by 2.01% to $95.27 in premarket [5]