Nebius announces a $5 billion convertible note offering, sparking dilution concerns and a 21.1% weekly stock decline.
Nebius Group (NASDAQ: NBIS) stock fell 21.1% this week after announcing plans to raise $5 billion via convertible notes. The move raised investor concerns over potential shareholder dilution if the notes convert to common stock, despite strong demand for the company’s compute capacity.
The company reported over $4.5 billion in net cash from operating activities in the first half of 2026, a sharp increase from $350 million in the year-ago period. Capital spending by major hyperscalers has already reached $300 billion this year, nearing 75% of their total 2025 expenditure.
Nebius highlighted growing demand for its data center capacity, with contract value per megawatt rising significantly. The stock’s decline presents a buying opportunity for some investors, given the company’s long-term growth prospects.