NEBIUS (NBIS) shares plummeted 8.55% during intraday trading on Tuesday following the company's announcement of a major capital raising initiative.

The AI infrastructure firm revealed plans for a proposed private offering of $3.75 billion in convertible senior notes. The offering includes $2 billion of notes due 2031 and $1.75 billion due 2033, with potential over-allotment options that could increase the total amount raised.

Market analysts note that such large convertible bond offerings often trigger negative price reactions due to concerns about potential shareholder dilution when the notes are converted to equity. The company stated it plans to use the net proceeds to fund data center construction and build-outs, AI cloud development, expansion of its data center footprint, GPU procurement, and general corporate purposes.