Cloudflare plans to issue $2.175 billion in convertible senior notes due 2031

BlockBeats News, August 10th - According to market sources, technology and cloud services company Cloudflare announced plans to issue a total of $21.75 billion in convertible senior notes through a private placement. This includes $15 billion in principal amount of 2031 convertible notes and an additional $7.5 billion in principal amount of the greenshoe option.

The company stated that the proceeds from this issuance will be used for general corporate purposes. The notes will be senior unsecured obligations convertible into Cloudflare common stock, and the specific terms, interest rate, and conversion price will be determined at the time of pricing.

BlockBeats previously reported that on August 8th, ARK Invest Research Director Lorenzo Valente stated that the crypto community may have missed the most important earnings conference call of the week - Cloudflare's earnings call. While the market was focusing on news related to Cloudflare's wallet, what is truly worth paying attention to is the company management's assessment of the Internet infrastructure transformation in the era of AI Agents.

Lorenzo pointed out that Cloudflare currently carries approximately 20% of Internet traffic, and the data disclosed by the company indicates that AI Agent requests have grown by 1700% year-on-year. This quarter, AI Agent traffic has accounted for over 50% of total network traffic, marking the first time in Internet history that non-human traffic has become the primary traffic source.

He believes that AI Agents will fundamentally change the current Internet business model. The traditional software service model relying on advertising and subscriptions is not suitable for agent access scenarios because AI Agents do not browse ads like human users. In the future, Cloudflare may establish a new Internet value settlement layer by charging minimal micropayments for legitimate AI Agent requests.