Nebius Group N.V. ( NBIS ) shares are trading lower Monday after the company announced a $1 billion private convertible notes offering.

What Happened: AI infrastructure company Nebius ( NBIS ) said it entered into definitive agreements for a $1 billion private placement of senior unsecured convertible notes in two tranches, including $500 million of 2% convertible notes due 2029 and $500 million of 3% convertible notes due 2031.

The notes are being offered to qualified institutional buyers and are subject to a 30-day lockup period. Settlement and delivery of the notes is expected to occur on or about June 5. Nebius ( NBIS ) expects to use the net proceeds to finance continued growth of its business, including to acquire additional compute power and expand its data center footprint.

“We are pleased to have successfully raised $1 billion in convertible notes, which marks another major milestone and underscores the deep conviction of the investment community in our business,” said Arkady Volozh, CEO of Nebius Group ( NBIS ).

“Since our $700 million equity financing in December 2024, we have been scaling rapidly and expanding our global AI infrastructure footprint. The fresh capital we are raising now gives us more firepower to go faster, paving the way for increased revenue opportunities in 2026 and further accelerating us toward our medium-term target of mid-single-digit billions of dollars in revenue as a high-margin business, with potential upside.”

Nebius ( NBIS ) shares have seen increased attention in recent weeks after the company announced a strategic investment from Bezos Expeditions, the investment arm of Amazon’s Jeff Bezos. The company is also backed by Nvidia, which participated in the $700 million capital raise, referenced by Volozh, with a group of investors in December.

Nebius ( NBIS ) reported 385% growth last month when it reported financial results for the first quarter. The company said it ended the period with approximately $1.45 billion in cash and cash equivalents.

“Our strong balance sheet and low interest burden will allow revenue growth to translate efficiently into bottom-line results and to be reinvested into our core business,” the company said on Monday.

NBIS Price Action: Nebius Group ( NBIS ) shares were down 3.4% at $35.50 at the time of publication Monday, according to Benzinga Pro.

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