Key Takeaways
- Shares of FRMI plummeted 25% following the conclusion of its IPO lock-up window, unleashing approximately 32.5 million shares into circulation
- First-quarter financial results are scheduled for release today, creating additional volatility amid already turbulent trading conditions
- A major anchor tenant worth $150 million has departed, while securities fraud legal proceedings continue
- The stock hovers near its yearly bottom of $5.93, representing an 81% decline from its peak over 12 months
- Wall Street price projections span $20–$35, though InvestingPro suggests the shares remain expensive despite recent losses
Fermi Inc. (FRMI) experienced significant turbulence on Monday as the real estate investment trust witnessed a dramatic 25% selloff triggered by the expiration of its initial public offering lock-up agreement. The event unleashed roughly 32.5 million previously restricted shares onto the open market, prompting immediate selling pressure from early investors.
The circumstances surrounding the decline prove particularly challenging given the timing. The company is preparing to unveil its maiden quarterly financial report today — representing its first earnings disclosure since incorporation on January 10, 2025, covering operations through December 31, 2025. Management has organized an investor conference call scheduled for 8:00 a.m. Central Time (9:00 a.m. Eastern) to discuss the financial performance.
$FRMI reported earnings
Let’s focus on the most important factors before financials as this is a pre revenue company
-Power online right now: 86 MW of grid power via an Xcel Energy subsidiary, with a ramp to 200 MW. They are ready to service a tenant with power today
-Power… https://t.co/IDfxLgHKf6
— Position Journal (@PositionJournal) March 30, 2026
The company published the earnings information via a shareholder communication letter submitted in an 8-K filing to the Securities and Exchange Commission.
The lock-up expiration represents just one challenge among several facing the REIT. A significant $150 million anchor tenant recently vacated its agreement — representing a substantial setback for the developing enterprise. Additionally, ongoing securities fraud litigation continues to cast uncertainty over the investment.
The year-to-date performance shows FRMI declining approximately 23%. Over the trailing twelve months, the devastation intensifies with an 81% drop, pushing shares close to the annual low of $5.93.
Despite the severe downturn, Wall Street research analysts maintain optimistic outlooks. Forecasted valuations stretch from $20 through $35 — representing substantial upside from current trading levels. However, InvestingPro’s proprietary analysis, which evaluates over 1,400 domestic equities, indicates the stock trades above fair value even following the recent collapse.
Macroeconomic headwinds compound company-specific difficulties. Market observers note that climbing Treasury rates are creating pressure across real estate and utility sectors broadly, layering additional challenges atop Fermi’s individual struggles.
Project Matador: Strategic Infrastructure Development
While near-term conditions appear challenging, Fermi’s extended-horizon infrastructure expansion continues progressing. The enterprise recently finalized a $165 million senior secured financing arrangement with CSG Investments, a Beal Bank USA affiliate. Proceeds will fund the acquisition of six Siemens Energy SGT-800-57 natural gas turbines — each delivering 57MW output — with anticipated delivery in 2028.
Fermi’s flagship Project Matador obtained authorization for its initial 6GW clean air certification from the Texas Commission on Environmental Quality. The organization intends to pursue an additional 5GW authorization, potentially expanding total supported generation capacity to approximately 17GW.
Regarding nuclear development, Fermi has partnered with Hyundai Engineering & Construction to progress Front-End Engineering Design activities for four AP1000 nuclear reactors at the Project Matador location.
Analyst Perspectives
Citizens analyst Greg Miller maintained a Market Outperform assessment, highlighting Fermi’s data center construction initiatives and capital investment strategy at Project Matador. Evercore ISI analyst Nicholas Amicucci characterized the environmental permit authorization as a constructive milestone for project advancement.
FRMI maintains dual listings on both the Nasdaq and London Stock Exchange under identical ticker symbols.
The 52-week floor sits at $5.93. At publication time, shares were changing hands at $6.18.
