IREN has closed its $3.0bn convertible notes offering Key details of the transaction: - 1.00% coupon convertible senior notes due 2033 - $2.6bn offering plus fully exercised $400m greenshoe - $2.96bn net proceeds, after deducting the initial purchasers’ discounts and commissions and IREN’s estimated offering expenses - Capped call transactions expected to provide a hedge upon conversions up to an initial cap price of $110.30 per share - No put option for investors in the notes other than a customary put right in the case of certain fundamental changes Read more: iren.gcs-web.com/static-file…

While the market fixates on a revenue “miss,” this dive into $NBIS latest earnings and strategic moves reveals a far more bullish story unfolding beneath the surface! Before diving into the company’s financials, it is essential to evaluate the broader industry. Demand for AI infrastructure has exceeded all forecasts, while GPU shortages and power requirements are spiking. Research indicates that the combined CapEx of hyperscale companies is projected to reach approximately $700B in 2026, representing a 74% increase from 2025, whereas demand for AI data center power is projected to quadruple over the next decade, according to Bloomberg. This supply-demand imbalance makes companies like Nebius incredibly relevant, particularly as the market grows wary of heavy CapEx, as they offer the most efficient and affordable method for firms to delegate their computational needs. Nebius addresses these market shortages through its strategic partnership with Nvidia, which grants early access to next-generation chips like the “Rubin Chips”, providing a GPU Advantage. Furthermore, the company is rapidly securing power agreements to support its growth, more than doubling its contracted power from 1GW to 2.5GW in less than a year. 1)Revenue Analysis Many investors are concerned about Nebius' Q4 revenue as it fell short of analyst expectations, coming in at $227.7M versus the projected $243M (-8%). Despite the miss, revenue reflects explosive 547% year-over-year growth and a 56% increase compared to the previous quarter. With AI Cloud revenue exploding by 800% YoY, it’s clear that Nebius isn’t facing a demand problem. Τhey are simply scaling as fast as their capacity allows. At this point, it is crucial to understand the company’s revenue recognition policy. Under IFRS and the accrual principle, Nebius enters into agreements for AI Cloud services but cannot recognize revenue until the corresponding computing power is delivered to the customer. This means revenue is only recognized as capacity comes online and power is consumed at the facilities. Nebius has already secured the components needed for its Microsoft and Meta partnerships, insulated itself from price volatility. Guidance: Nebius forecasts 2026 revenue of $3B–$3.4B, falling slightly below Bloomberg's $4B consensus. As previously noted, Nebius is scaling as fast as its capacity allows. According to management, the expansion will truly impact the bottom line in the second half of 2026. Smaller colocation sites will come online in Q2 and Q3, but the larger-scale projects, which offer better long-term margins, are set to deliver in late 2026 and 2027. This suggests a quieter H1, but in no way compromises the company's long-term growth story. 2)Annualized Recurring Revenue (ARR) For companies with a profile like Nebius, analyzing ARR provides far more reliable insights. In Q4, the company smashed analyst expectations by reporting an ARR of $1.25B, significantly outperforming the projected $900M–$1B range. This reveals the true growth of the business, which standard reported revenue tends to hide. 3)Cash Flow Nebius closed 2025 with $3.7B in cash and cash equivalents, $1.57B in deferred revenue, $834M in operating cash flow generated in Q4 alone, and zero debt. This liquidity allows for a disciplined execution of its $16B–$20B CapEx plan for 2026. 4)CapEx In its 2026 guidance, $NBIS projects CapEx of $16B–$20B, which serves as the company's primary investment pillar. During the earnings call, COO Ophir Nave noted that less than 1% of this CapEx is allocated to securing energy, about 20% to data center construction, and approximately 80% to GPU acquisition (this high GPU concentration is considered low-risk, as it is strictly demand-driven). Alongside its Q4 results, Nebius unveiled nine new data center locations, a combination of owned campuses and colocation partnerships, which exemplify the company’s rapid expansion. The firm utilizes leased data centers to provide clients with immediate infrastructure as per existing agreements, while simultaneously developing its proprietary facilities to transition them over in the long term. Management also highlighted a pipeline of ongoing projects that are expected to be unveiled during 2026. 5)Adjusted EBITDA Analysis The company achieved positive adjusted EBITDA for the first time, reaching $15M—a 123.5% YoY increase, despite a full-year loss of $64.9M in 2025. For 2026, management targets a 40% margin, as the AI Cloud business continues to operate with high profitability margins. EBIT is projected to remain negative in 2026 due to significant R&D investments. A key announcement is the extension of the depreciation period from 4 to 5 years. This change reduces annual depreciation expense, resulting in a positive impact on EBIT and Net Income. This adjustment was made to ensure alignment with industry peers and is treated as a change in accounting estimate under IFRS guidelines. 6)Funding the Growth Nebius has supported its rapid growth so far using equity financing with zero debt. To maintain this pace, the company is now looking to external funding sources. The COO stated that 60% of the projected CapEx ($16B–$20B) is covered by operating cash flows and existing cash reserves. For the remaining 40%, management is evaluating several financing options, including debt financing—potentially collateralized by major contracts with $MSFT & $META —equity issuance, or the liquidation of holdings in subsidiaries such as ClickHouse and Avride. We can expect to see these figures materialize throughout the fiscal 2026 reporting cycle. **Not Financial Advice**

🚀 AST SpaceMobile $ASTS Announces $850 Million Private Offering of Convertible Senior Notes Due 2036 📅 October 21, 2025 – Midland, TX 🔍 AST SpaceMobile (NASDAQ: ASTS), the company developing the world’s first space-based cellular broadband network accessible directly by standard smartphones, announced plans to offer $850 million in convertible senior notes due 2036 in a private placement to qualified institutional buyers under Rule 144A of the U.S. Securities Act. The company may also grant initial purchasers an option to buy up to an additional $150 million in notes within 13 days of issuance. 💵 Key Terms (to be finalized upon pricing) Principal amount: $850 million (plus potential $150 million upsizing) Maturity: January 15, 2036 Type: Senior, unsecured, convertible notes Interest: Payable semiannually (rate TBD) Conversion: Into cash, Class A shares, or a mix—at ASTS’s discretion 📈 Use of Proceeds Funds will support general corporate purposes, primarily the deployment of AST SpaceMobile’s global satellite constellation and expansion into new strategic markets for its SpaceMobile Service. ⚖️ Structure and Compliance Notes are unregistered under the Securities Act and may only be sold to qualified institutional buyers. Conversion shares (if any) are also restricted securities until registered or exempted. 🛰️ Concurrent Transactions 1️⃣ Registered Direct Stock Offering AST SpaceMobile also plans to issue new Class A common shares through a registered direct offering, separate from the convertible notes transaction. Proceeds: Along with cash on hand, will fund the repurchase of up to $50 million of its existing 4.25% convertible senior notes due 2032. 2️⃣ Existing Convertible Notes Repurchase ASTS expects to negotiate privately with select holders to buy back up to $50 million of its 2032 notes for cash. The repurchase terms will depend on market prices of both the notes and ASTS shares. Following this deal, ASTS may continue repurchasing additional existing notes. 📊 Market Impact Holders participating in the repurchase may buy or sell ASTS shares or adjust derivative hedges, potentially causing significant volatility in ASTS stock and note prices due to the transaction’s scale relative to daily trading volumes. ⚠️ Key Clarifications The convertible notes offering and registered direct offering are not contingent upon each other. This announcement does not constitute an offer or solicitation to sell or buy securities in any jurisdiction. 💡 Summary Insight This dual financing move strengthens AST SpaceMobile’s balance sheet ahead of large-scale satellite deployment, while optimizing its debt maturity profile by repurchasing earlier 2032 convertible notes. The strategy reflects management’s confidence in upcoming commercial launches and the scalability of its direct-to-smartphone satellite network for both commercial and government clients.