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TLDR
- FRMI stock climbed 13.26% to $2.05 following a major Project Matador funding deal.
- An unnamed hyperscaler committed $200 million toward 600 MW at Project Matador.
- Fermi secured a $15 million deal for early construction and site development work.
- Fermi ended its TensorWave lease while maintaining its Texas Tech partnership.
- Fermi reported a $141.6 million Q3 loss and $315.5 million in cash reserves.
Fermi Inc. (FRMI) shares surged 13.26% to $2.05, gaining $0.24 despite retreating from intraday highs near $2.25. The rally followed Fermi’s announcement of major hyperscaler agreements supporting its Project Matador development. Meanwhile, the company reported its third-quarter 2026 financial results and outlined plans to expand power capacity.
Fermi Secures $200 Million Hyperscaler Commitment for Project Matador
Fermi announced agreements with an unnamed investment-grade hyperscaler to develop 600 megawatts of power capacity at Project Matador. The company expects development activities to support the customer’s planned deployment beginning in 2027. The agreements provide early customer funding before both parties finalize a long-term lease.
The hyperscaler committed $200 million through a prepayment agreement supporting the proposed development. Additionally, a separate $15 million agreement covers early construction activities and site preparation. These arrangements allow Fermi to advance infrastructure work while meeting the customer’s development schedule.
Fermi also plans to finalize a $90 million agreement covering structural steel and building materials. The agreement would give the customer access to materials that Fermi secured before construction. The company expects these arrangements to accelerate development and reduce its need for additional equity funding.
Fermi Ends TensorWave Lease and Maintains Texas Tech Partnership
Fermi also announced the termination of its August 2026 data center lease agreement with TensorWave. The termination also ended the related AMD credit support agreement. The company continues pursuing other commercial opportunities across its planned infrastructure capacity.
Project Matador currently has 2.2 gigawatts of planned capacity available for potential customers. Fermi expects its existing customer pipeline to support future leasing opportunities across the development. The company must secure definitive agreements before converting those opportunities into contracted revenue.
Fermi continues working with the Texas Tech University System on Project Matador. Both organizations are addressing land lease conditions that must precede vertical construction. Texas Tech Chancellor Brandon Creighton also reaffirmed the university system’s support for the partnership.
Fermi Reports $141.6 Million Quarterly Loss as Development Spending Continues
Fermi reported $315.5 million in total cash and restricted cash at September’s end. The company also recorded $133.4 million in property and equipment investments during the third quarter. These expenditures increased its net property and equipment balance to approximately $1.67 billion.
Outstanding net debt reached $958.4 million following additional borrowing during the quarter. Convertible senior notes and equipment financing facilities contributed $463 million in net borrowing increases. The company continues using financing arrangements to support its infrastructure development activities.
Fermi recorded a quarterly net loss of $141.6 million, equivalent to $0.22 per share. General and administrative expenses reached $142.2 million, including $65.8 million in noncash stock compensation. Additionally, stock-settled advisory fees totaled $21.5 million as Fermi continued developing its pre-revenue business.
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