re: Nebius - NBIS - AI Infrastructure Company

I think that’s a solid plan.

Is this your source?

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I’m not sure Lemonade will be solvent in 3 years. Are they still hemorrhaging money? I haven’t checked their financials in a little while. Either way, I don’t think this is a good move

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LINK

It’s the playbook…

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Private offering....shite.

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??

FIRST, WHAT IS A CONVERTIBLE NOTE?
A convertible note is a hybrid between a loan and future stock ownership. It is basically debt (a bond or note) that a company borrows, but with a special twist: at some point later, that debt can automatically convert into actual shares of the company's stock instead of just being paid back in cash.

WHY DO COMPANIES (ESPECIALLY FAST-GROWING TECH/AI FIRMS) USE THEM?
Imagine you are a rapidly growing company like NBIS (building AI cloud infrastructure), but your stock price is volatile and hard to pin down today because growth is exploding.
Investors want to give you money now for data centers, GPUs, and expansion.
But no one wants to fight over what is the company worth right now when it could be much higher (or lower) in 6-12 months.

So they use convertible notes instead of selling stock at a fixed price or taking a normal loan.
The investor loans money, gets low interest, and later (usually when the company raises a bigger round or hits certain conditions), the loan converts into shares - often at a discount to the then-current stock price.

NBIS (NEBIUS GROUP, NASDAQ: NBIS) IS A PUBLIC AI INFRASTRUCTURE COMPANY
It needs billions in cash to compete in the AI boom (building data centers, buying hardware, winning big contracts).
Even as a public company, it uses convertible notes because they are flexible and attractive in a hot sector like AI.

THEIR LARGEST / MOST RECENT CONVERTIBLE NOTES (FROM SEPTEMBER 2025)
This was the big one: $2.75 billion total (upsized from an initial $2 billion plan).
Sold privately to big institutional investors (not to retail investors).
Split into two series for different maturities:

- $1.375 billion of 1.00% convertible senior notes due 2030
- $1.375 billion of 2.75% convertible senior notes due 2032

(Settled September 15, 2025. Initial purchasers had options for more, and some were exercised, pushing totals higher in some reports, but the base was $2.75 billion.)

KEY FEATURES FROM THIS OFFERING
- Very low interest rates (1.00% and 2.75% annual, paid semi-annually) - much lower than normal corporate bonds because investors get the conversion upside.
- Conversion - notes convert into class A ordinary shares (initial rate was about 7.2072 shares per $1,000 principal, meaning a conversion price around $138.75 per share at launch).
- Net proceeds - roughly $2.69 billion (after fees), used for growth: more compute power, hardware, land for data centers, and general corporate purposes.
- Extra option - investors could buy up to an additional ~$412.5 million more (split between the two series).

EARLIER ONE (JUNE 2025, FOR REFERENCE)
There was also a $1 billion convertible notes placement:
- $500 million at 2.00% due 2029
- $500 million at 3.00% due 2031

WHY NBIS CHOOSES CONVERTIBLE NOTES (EVEN AS A PUBLIC COMPANY)
- Cheaper capital - low interest + equity upside makes it attractive to investors excited about AI growth.
- Delays dilution - no immediate new shares issued (unlike selling stock directly), so existing shareholders don't get diluted right away. Conversion happens later, and only if the stock performs well.
- Downside protection for investors - if things go bad, it is still debt - they get paid back before stockholders.
- Upside for investors - if NBIS stock soars (e.g., from big AI deals), they convert and own shares cheaply.

BOTTOM LINE
Convertible notes = loan today, potential stock tomorrow.
NBIS has raised billions this way (especially the $2.75 billion deal at 1.00% to 2030 and 2.75% to 2032) because it is a smart, low-cost way to fund massive AI expansion while giving investors safety plus a shot at big gains if the company keeps winning.

FWIW, the last two convertible announcements were only met with a couple of days of downside and both presented fantastic buying opportunities short term.

Disclaimer: Historical price action is no guarantee of future appreciation :)

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fantastic buying opportunities short term.

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in your humble, and NON-professional opinion (got your disclaimer for you) I have been waiting for the chance to buy more.

question is, at what point do you think is the smart buy? Down $9.50 ish already this morning.

I have a CC at 120 expiring 3/27. I thought for sure it was gone and set a new one at 170 (4/17) yesterday with a nice premium. I am not familiar with rolling into a new higher call on the 120. Can you explain how you would handle. Do not want to lose my 100 shares.

In my very humble and lowly opinion, I think $108-110 could be a new floor.