$6.5B TensorWave Data Center Lease Fails to Close by October 31 Deadline
FRMI is trading near its 52-week low of $2.185 (0.7% above the low).
Summary
Fermi's lease and services agreement with TensorWave did not become effective after closing conditions went unsatisfied by the October 31 deadline. The conditions are substantive, not clerical: executed work letters and guaranties, finalized operations schedules and a service-level agreement, board approvals, and project-level financing sufficient to fund construction. Both sides say they are still working toward a close, and CEO Lee McIntire expects to give more detail on next week's earnings call or sooner. This is the anchor contract underpinning the story — the 8-K on October 14 laid out $6.5B of contracted revenue over 15 years across 222 MW at Project Matador, and the stock is already trading near its 52-week low of $2.185. The October 16 8-K showed lender MUFG waived the November 10, 2026 deadline to sign a 400 MW lease or offtake deal, so the financing backstop has a hard date attached. Shares fell 3.4% pre-market on the news. Watch the earnings call next week for whether the financing condition is resolved or the deal terms change.
At the time of this announcement, FRMI was trading at $2.20 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.4B. The 52-week trading range was $2.19 to $30.02. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Seeking Alpha.