Fermi (FRMI) Stock Plunges 25% as IPO Lock-Up Ends Amid Tenant Loss and Legal Woes

Key Takeaways

Table of Contents

FRMI shares plummeted 25% following the expiration of its IPO lock-up period, unleashing approximately 32.5 million shares into the market
First-ever quarterly earnings report scheduled for release today, creating additional volatility for the embattled stock
A major $150 million anchor tenant departure and active securities fraud legal proceedings continue to weigh on sentiment
The stock hovers near its 52-week bottom of $5.93, representing an 81% decline over the past twelve months
Wall Street price targets span $20–$35, though InvestingPro data suggests the shares remain overvalued even at current depressed prices

Fermi Inc. (FRMI) is enduring a brutal trading session Monday. The real estate investment trust witnessed shares crater 25% as selling pressure intensified following the conclusion of its IPO lock-up restriction. Approximately 32.5 million previously restricted shares flooded into the tradable supply, triggering an immediate exodus.

Fermi Inc. Common Stock, FRMI

The confluence of events creates a perfect storm. Fermi is simultaneously preparing to unveil its maiden quarterly financial report today — marking the company’s first official results spanning from its January 10, 2025 establishment 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 submitted its results via shareholder letter through an 8-K filing with the Securities and Exchange Commission.

Compounding the lock-up expiration chaos, Fermi confronts several additional challenges. The REIT recently suffered the departure of a $150 million anchor tenant — a significant setback for a newly established company. Active securities fraud litigation also continues to cast a shadow over investor confidence.

For the current calendar year, FRMI has surrendered nearly 23% of its value. The twelve-month performance paints an even grimmer picture at negative 81%, with shares trading perilously close to the annual nadir of $5.93.

Despite the carnage, Wall Street research analysts maintain optimism. Consensus price objectives range between $20 and $35 — representing substantial upside from current trading levels. However, InvestingPro, which provides analytics on over 1,400 U.S. equities, characterizes the stock as overpriced even at these historically low valuations.

Macro headwinds compound company-specific troubles. Market observers note that climbing Treasury yields are pressuring real estate and utility sectors broadly, layering additional sector-wide stress atop Fermi’s individual challenges.

Project Matador: The Long Game

While immediate prospects appear challenging, Fermi’s strategic infrastructure expansion continues progressing. The corporation recently finalized a $165 million senior secured term loan facility with CSG Investments, a Beal Bank USA affiliate. Proceeds will finance the acquisition of six Siemens Energy SGT-800-57 gas turbines — each delivering 57MW generating capacity — slated for 2028 deployment.

Fermi’s Project Matador achieved regulatory clearance for its initial 6GW clean air authorization from the Texas Commission on Environmental Quality. Management intends to pursue an additional 5GW permit application, potentially elevating total supported generating capacity toward approximately 17GW.

Regarding nuclear development, Fermi and Hyundai Engineering & Construction continue progressing Front-End Engineering Design work for four AP1000 nuclear reactor units at Project Matador.

Analyst Sentiment

Citizens analyst Greg Miller maintained a Market Outperform rating, highlighting Fermi’s data center construction pipeline and capital investment strategy at Project Matador. Evercore ISI’s Nicholas Amicucci characterized the environmental permit authorization as constructive news for project advancement.

FRMI maintains dual listings on the Nasdaq and London Stock Exchange under identical ticker symbols.

The equity’s annual low point registers at $5.93. As of this writing, shares were changing hands at $6.18.