Nebius Group's stock experienced a sharp pre-market decline of 5.10% 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. According to company statements, the proceeds from this convertible loan offering will be used to fund the construction and build-out of its data centers, including GPU procurement, to finance its core AI cloud services business.

Market analysts note that such convertible bond offerings can lead to concerns about shareholder dilution, which often triggers negative price reactions in the pre-market session as investors assess the impact on existing equity holdings.