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

August 10th. According to market sources, technology and cloud services company Cloudflare announced that it 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 over-allotment option.

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

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

Lorenzo pointed out that Cloudflare currently handles about 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 the 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 charge extremely low micropayment fees for legitimate AI Agent requests, establishing a new Internet value settlement layer.