AI storage firm Backblaze stabilizes after boosted $175 mln convertible offering

Backblaze

20/08/2026 12:05

** AI storage platform Backblaze BLZE.O shares trading around the flat line premarket on Thurs after above-target raise
** San Francisco-based BLZE late Weds announced pricing private offering of $175 mln 0% convertible bonds due Aug 15, 2031
** Conversion price of $21.94 is 30% premium to stock's last sale of $16.88 on Weds
** BLZE shares closed down 12% on Weds after co late Tues unveiled $150 mln offering for general corp purposes, capex with BofA as lead bookrunner
** Co intends to use approx $15.2 mln of net proceeds to pay cost of capped calls; cap price of $33.76 is double stock's last close
** In Jun, BLZE inked a 5-yr, $335 mln AI storage deal with neocloud firm CoreWeave CRWV.O
** Through Weds, BLZE stock has nearly 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))