Shares of Nebius Group declined after the company said it plans to offer $4.5 billion of convertible senior notes in a private offering to institutional investors.

The stock declined 8.4% to $227.58 on Wednesday. Shares have more than doubled this year.

The cloud company said it plans to offer the notes in two series, $2.75 billion of notes due 2030 and $1.75 billion of notes due 2034.

Nebius also expects to grant the initial buyers an option to purchase up to an additional $375 million of 2030 notes and up to an additional $300 million of 2034 notes.

The company plans to use proceeds from the offering to cover costs related to building data centers, developing its full-stack AI cloud and procuring key components including graphics processing units.