Fermi plunged 44% on Friday after the energy and real estate company said a $150 million funding deal with one of its power grid's potential tenants had fallen through.
Fermi has been continuing site work at Project Matador, a Texas-based grid that it said will supply 11 gigawatts of power to the massive data centers that power artificial intelligence.
However, the project appears to have hit a snag. Fermi disclosed in a securities filing Friday that it had lost a funding commitment from a potential tenant earlier this week.
On Sept. 19, the company entered into a non-binding letter of intent with what it called an investment-grade rated tenant to lease part of the Project Matador site, Fermi said. The parties entered into a subsequent agreement in November, with the tenant agreeing to advance up to $150 million to fund construction costs. No funds were drawn under the agreement.
The exclusivity period provided in the letter of intent expired on Dec. 9. Two days later, the tenant notified Fermi that it was terminating the November agreement for the $150 million funding commitment. In spite of this development, "the parties continue to negotiate the terms of a lease agreement at Project Matador pursuant to the letter of intent," Fermi wrote in the filing.
The company said it was "confident" it could meet the expected power delivery schedule at Project Matador "as the demand for behind-the-meter power for AI remains robust over the near and long term."
The stock began trading on the Nasdaq and the London Stock Exchange through a simultaneous dual listing in October.
To date, Fermi has yet to generate any revenue. It was founded at the start of 2025 with the aim of building the world's largest data-center campus, and says it remains on course to begin producing power from non-nuclear sources by 2026.
As recently as November, the company indicated it was running behind schedule on negotiations with its first major tenant, which is now known to be the tenant that backed out of the funding agreement.
Fermi's Project Matador site includes the Donald J. Trump Generating Plant, which will generate power for hyperscalers. One of its three founders, Rick Perry, served as Texas governor and briefly as energy secretary during President Donald Trump's first term.
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