Shares of Fermi Inc. (FRMI) plunged to $1.82 — down 10.6% on the day and 40% in just one week — after the company disclosed that its sole binding customer lease with TensorWave failed to take effect when closing conditions went unmet by the October 31 deadline. The company does not have any other public customers.
This Is the Second Missed Deadline, Not the First
The closing date had already been extended once, from September 30 to October 31, 2026. Now it has blown past that revised date with no new target. Outstanding conditions include executing work letters and guaranties, finalizing operations schedules and a service-level agreement, obtaining board approvals, and securing project-level financing to fund construction. That is not a checklist of minor loose ends — it is a list of foundational requirements, suggesting the deal remains far from ready.
$6.5 Billion in Revenue Exists Only on Paper
The lease has an initial 15-year term and is expected to generate about $6.5 billion in contracted revenue if it takes effect. That is a massive "if." Fermi currently reports $0 in revenue.
The stock has fallen roughly 93% since its October 2025 IPO , and its trailing EBITDA — a measure of operating profit — stands at negative $365 million. The market cap, now roughly $1.2 billion at today's price, is being held up entirely by the promise of a deal that has yet to become legally effective.
Fermi Has a History of Tenant Agreements Falling Apart
In December 2025, a proposed tenant pulled out of a $150 million data center lease on the same site, crashing the stock.
That exit triggered a roughly 40% plunge , and Fermi spent months rebuilding credibility before announcing the TensorWave deal in August. The company has just 35 employees , making execution of a gigawatt-scale campus an extraordinary ask.
Management's "Committed" Messaging Deserves Skepticism
CEO Lee McIntire said "both Fermi and TensorWave remain committed to this lease."
Neither party has exercised termination rights. But commitment without a new closing date or disclosure of which conditions remain unmet is reassurance without substance. Fermi's next earnings call is scheduled for November 12 , where investors will demand specifics. Until the lease is legally effective, every dollar of Fermi's valuation is essentially a bet that this time the tenant actually stays.