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

According to market sources, tech and cloud services firm Cloudflare announced plans to issue $2.175 billion in aggregate convertible senior notes via private placement, consisting of $1.5 billion in principal of notes maturing in 2031, plus an additional $750 million in principal via an overallotment option. The company said proceeds from the offering will be used for general corporate purposes. The notes will be unsecured debt convertible into Cloudflare common stock, with specific conversion terms, interest rates and conversion prices to be determined at pricing. BlockBeats previously reported that on August 8, ARK Invest Research Director Lorenzo Valente noted the crypto community may have missed the most important earnings call of the week: Cloudflare’s results call. While the market focused on Cloudflare’s wallet-related news, what truly merits attention is the company’s management’s assessment of shifts in internet infrastructure amid the AI Agents era. Lorenzo pointed out that Cloudflare currently handles roughly 20% of global internet traffic, and data disclosed by the firm shows AI Agent requests have surged 1,700% year-over-year, with AI Agent traffic accounting for over 50% of total network traffic this quarter—marking the first time in internet history that non-human traffic has become the primary source of traffic. He argued AI Agents will completely transform the current internet business model. Traditional software service models relying on advertising and subscriptions do not apply to agent access scenarios, as AI Agents do not browse ads like human users. Going forward, Cloudflare may establish a new internet value settlement layer by charging extremely low micropayment fees for legitimate AI Agent requests.