Fermi Shares Plunge After Major Tenant Cancels $150 Million Funding Deal
Dec 12, 2025
Shares of Fermi Inc., a company focused on building AI-powered energy infrastructure and data centers, fell by around 40% on Friday. The sharp drop came after Fermi announced that its first major potential tenant pulled out of a funding agreement worth $150 million.
The cancelled agreement was related to Project Matador, Fermi's large-scale development in Texas. The prospective tenant’s funding was expected to help finance the construction of the site, which is a key part of the company's plans.
Fermi is a newly public company and this setback deals a significant blow to its early growth. The loss of the funding commitment has also caused the Fermi stock price to reach record lows.
Why did Fermi's stock drop so much?
The stock dropped because a major potential tenant backed out of a $150 million funding agreement, which was important for financing one of Fermi's key projects.
What does Fermi do?
Fermi develops large-scale energy and data center infrastructure, focusing on using artificial intelligence.
What is Project Matador?
Project Matador is Fermi's flagship development in Texas, where they planned to build major energy and data center facilities.
Is Fermi still in business after this setback?
Yes, Fermi is still in business but now faces challenges after losing the funding from its first major tenant.
Sources
Fermi Stock Craters 41% as AI-Energy Company Loses Funding Commitment From First...
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The nascent AI infrastructure company says a potential tenant cancelled a $150 million agreement.
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Market Watch
Market Watch
Fermi, co-founded by a former secretary of energy, Rick Perry, said its first potential tenant of Project Matador has backed out of an agreement to provide $150 million in advance funding.
Data center REIT Fermi tumbles 40% after potential customer backs out of funding...
Reuters
Reuters
Shares of Fermi plunged 40% on Friday after the data center real estate investment company said a prospective tenant had terminated a deal to help fund construction at its Texas site, dealing a setback to the newly listed firm.
Fermi Stock Sinks to Record Low Following Tenant Exit
Schaeffers Research
Schaeffers Research
Shares of Fermi Inc. (NASDAQ:FRMI) are down 32.8%, last seen trading at $10.25.
Fermi's 'Tenant Exit' Triggers 40% Stock Slide — But The Street Still Sees A 3x...
Benzinga
Benzinga
A $150 million funding agreement evaporated overnight — and so did half of Fermi Inc's (NASDAQ: FRMI) market cap. The stock was down 40% pre-market on Friday.
Fermi stock crashes 40% as $150M funding deal collapses
Invezz
Invezz
Shares of Fermi plunged 40% on Friday after the data-center real estate investment company disclosed that a prospective anchor tenant had terminated a funding agreement tied to its marquee Texas project.
Securities Fraud Investigation Into Fermi Inc. (FRMI) Announced – Investors Who...
Business Wire
Business Wire
LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP, a leading national shareholder rights law firm, today announced that it has commenced an investigation on behalf of Fermi Inc. (“Fermi” or the “Company”) (NASDAQ: FRMI) investors concerning the Company's possible violations of the federal se...
Securities Fraud Investigation Into Fermi Inc. (FRMI) Announced – Investors Who...
Business Wire
Business Wire
LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces an investigation of Fermi Inc. (“Fermi” or the “Company”) (NASDAQ: FRMI) on behalf of investors concerning the Company's possible violations of federal securities laws. IF YOU ARE AN INVESTOR WHO LOST MONEY ON FERMI (FRMI), CLI...
Fermi Inc. (FRMI) Shares Tank 33% Amid First Tenant Contract Termination -- Hage...
SAN FRANCISCO , Dec. 13, 2025 /PRNewswire/ -- On December 12, 2025, investors in Fermi Inc. (NASDAQ: FRMI) saw the price of their shares crater about 33% after the company revealed that a prospective anchor tenant ("First Tenant") for Fermi's Project Matador (the company's Advanced Energy and Intell...
Fermi Inc. (FRMI) Shares Tank 33% Amid First Tenant Contract Termination -- Hage...
SAN FRANCISCO , Dec. 15, 2025 /PRNewswire/ -- On December 12, 2025, investors in Fermi Inc. (NASDAQ: FRMI) saw the price of their shares crater about 33% after the company revealed that a prospective anchor tenant ("First Tenant") for Fermi's Project Matador (the company's Advanced Energy and Intell...
Fermi: The Problems Of Raising Capital Amidst Hype
Seeking Alpha
Seeking Alpha
Fermi remains substantially overvalued, even after a steep price drop following the loss of a major tenant. FRMI's structural flaws—massive dilution and inflated market cap vs. capital raised—make value creation for equity holders extremely challenging. Current asset value is mostly cash raised and...
Fermi Inc. INVESTIGATION: Kirby McInerney LLP Announces Investigation Into Poten...
GlobeNewsWire
GlobeNewsWire
NEW YORK, Dec. 15, 2025 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP is investigating potential claims against Fermi Inc. (“Fermi” or the “Company”) (NASDAQ: FRMI). The investigation concerns whether the Company and/or members of its senior management may have violated federal securities...
Why New AI IPO Stock Fermi Is Rebounding After Plunging Over 40% in 2 Days
The Motley Fool
The Motley Fool
Fermi stock has plunged more than 50% since its IPO in October 2025. Fermi has just lost its first potential anchor customer.
INVESTOR ALERT: Investigation of Fermi Inc. (FRMI) by Holzer & Holzer, LLC
GlobeNewsWire
GlobeNewsWire
ATLANTA, Dec. 16, 2025 (GLOBE NEWSWIRE) -- Holzer & Holzer, LLC is investigating whether Fermi Inc. (“Fermi” or the “Company”) (NASDAQ: FRMI) complied with federal securities laws. On December 11, 2025, the First Tenant notified Fermi that it is terminating the Advance in Aid of Construction Agreeme...
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