AI storage firm Backblaze drops after unveiling $150 mln convertible deal

Backblaze

18/08/2026 22:00

** AI storage platform Backblaze BLZE.O shares down 8.6% at $17.55 in extended trading as it looks to raise capital
** San Francisco-based BLZE announces private offering of $150 mln convertible bonds due 2031
** Co, which has about $1.2 bln market cap, intends to use bulk of net offering proceeds for general corp purposes, capex
** It also intends to use some proceeds for capped call transactions, employed to help mitigate potential dilution
** BofA lead bookrunner for offering
** In Jun, BLZE inked a 5-yr, $335 mln AI storage deal with neocloud firm CoreWeave CRWV.O
** BLZE stock closed down 1% at $19.20 on Tues. Stock has more than quadrupled over the past six months
** 6 of 7 analysts rate the stock "strong buy" or "buy", 1 "hold"; median PT $23, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))