NBIS Stock Rises Overnight: Neocloud Reportedly Raises Nearly $280M For France Data Center

• Nebius is investing 8 billion euros (about $8.94 billion) to convert a former Bridgestone site in Béthune, France, into a major data center.
• A director at the firm purchased about $122,700 worth of company stock in recent days, according to a filing.
• Stocktwits sentiment for NBIS shifted to ‘extremely bullish’ from ‘bullish.’

Nebius Group NV (NBIS) shares rose 1% in overnight trading late Monday, recovering partially after a drop in the regular session amid a steep selloff in neocloud stocks.

French news outlet L’Informé reported on Monday that Nebius raised 250 million euros (about $279.3 million) for its data center near Lille in northern France, although the fundraise structure is unclear because those details are available only to the publication's subscribers.

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The Dutch cloud company is investing 8 billion euros to convert a former Bridgestone site into a major data center, with a targeted capacity of 240 megawatts. 

L’Informé reported that the first phase, totaling 60 MW capacity, will open in December. The project was announced in February.

Nebius is simultaneously developing large-scale data centers in Independence, Missouri (1.2 GW); Butler Township, Pennsylvania (1.2 GW); and, Lappeenranta, Finland (310 MW).

Nebius Insider Purchase

Separately, Nebius reported an insider purchase on Monday. Arne Grimme, a director at the firm, purchased 770 shares worth approximately $122,700 over three trading days, according to an exchange filing. The purchases were made under a pre-arranged trading plan.

The developments come amid a sharp selloff in neocloud stocks in recent weeks, driven by concerns about their debt-fueled expansion and the durability of their business models.

Elon Musk Warns Of Neocloud Failures

SpaceX and Tesla CEO Elon Musk said on Sunday that the neocloud sector will see “guppy-level death and consolidation” and that his rocket and AI firm, SpaceX, has no interest in buying out any of the companies. 

Musk said that debt markets had almost entirely shut off access to financing for companies without substantial revenue independent of AI data centers, adding that SpaceX does not fall in that category and in fact secured $40 billion in debt recently to purchase Nvidia GPUs.

Nebius CEO Arkady Volozh acknowledged that neocloud companies were finding it harder to raise debt. An excerpt from Volozh’s vodcast on the sidelines of Nvidia’s GTC conference in Berlin last week was making rounds on X, where Volozh said some sources of capital, including “asset-backed financing or debt markets,” had temporarily dried up.

He added that Nebius had enough funding to deliver its planned capacity expansion.  

Retail View On NBIS

On Stocktwits, retail sentiment for NBIS shifted to ‘extremely bullish’ from ‘bullish’ the previous day.

“$NBIS Just feels like the bottom is in,” said a trader. 

NBIS stock is down 35% so far in October, although the stock is still up 83% year to date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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