#USA #San Francisco #Hagens Berman #Project Matador #Fermi Inc.

Fermi Inc.: A Stock Market Fallout

On December 12, 2025, Fermi Inc. (NASDAQ: FRMI) faced a shocking upheaval in its stock value, witnessing an alarming drop of roughly 33%. This plummet occurred in response to the sudden termination of a significant tenant agreement, a move that has sent ripples through the investor community. The agreement involved a prospective anchor tenant for Fermi's ambitious Project Matador, a groundbreaking Advanced Energy and Intelligence Campus being developed at Texas Tech University.

Project Matador was touted as a groundbreaking project designed to meet the burgeoning demands of AI infrastructure, promising to be a multi-gigawatt energy and data center hub. Fermi earlier secured nearly $784 million in funding through the issuance of more than 37 million shares at $21 per share just a month prior, boosting investor confidence. However, the announcement of the tenant's withdrawal was a hammer blow to those expectations.

Contract Termination and Market Shock

The distress began when Fermi disclosed that the anchor tenant, identified as the "First Tenant," had unceremoniously canceled its agreement that was intended to advance $150 million towards the construction phase of Project Matador. This was not merely a loss of a tenant; it raised significant questions regarding the viability and future of the entire project.

In a time of uncertainty, the abrupt nature of the cancellation left the markets rattled. Shares closed at $10.09, nearly 52% lower than its initial public offering price in October 2025. This drastic downturn prompted the national shareholder rights law firm, Hagens Berman, to launch an investigation aimed at discern whether there was any prior misinformation or lack of transparency from Fermi about the strength of the agreements with the First Tenant.

Hagens Berman's Investigation

Hagens Berman, a firm with a reputation for championing investor rights, began its investigation shortly after the shares dropped. They have stated their intent to closely examine whether Fermi had been sufficiently transparent regarding the strength of its contractual obligations and the implications of the First Tenant’s departure.

Investors have been encouraged to reach out to the firm, especially those who may have experienced significant financial losses in the wake of this news. Reed Kathrein, a partner at Hagens Berman, expressed concerns about the transparency, stating, "We're focused on whether the company has been adequately forthright about the strength and terms of the agreements with Tenant 1."

Fermi had reassured its shareholders as recently as mid-November about the strength of its agreements, labeling the First Tenant as a very creditworthy counterparty. The sudden termination undoubtedly contradicts these initial assertions, leaving many investors feeling blindsided and seeking answers.

The Broader Implications

The implications of this incident stretch beyond just Fermi's stock. As technology and energy sectors seek to intertwine increasingly in the coming years, Fermi’s Project Matador was positioned as a potential leader in facilitating much-needed infrastructure for AI development. This unexpected contract termination illustrates the volatile nature of emerging technologies and the risks associated for investors entwined in such high-stakes ventures.

Conclusion

The stock price collapse of Fermi Inc. serves as a stark reminder of the fragile nature of market confidence surrounding new technologies and infrastructure projects. As the investigation by Hagens Berman unfolds, many will be watching closely how Fermi navigates this crisis and what the future holds for Project Matador. Investors and stakeholders alike are hoping for greater clarity and reassurance as they assess their positions in light of this significant market event.