Fermi America Sinks 11.5% with $375 Million Offering
A $375 million convertible note offering sent Fermi America into a sharp Friday selloff, but the real question hanging over the pre-revenue power developer is whether it can land a binding tenant before its cash runway runs out.
Shares of Fermi America (NASDAQ:FRMI | FRMI Price Prediction) are down roughly 11.5% in Friday afternoon trading, changing hands near $6.48 after opening the session at $7.32. The slide extends a rough stretch for the pre-revenue power developer, which is now down about 9% over the past week and roughly 78% from levels seen last October.
Convertible Note Pricing Weighs on Shares
Fermi priced an upsized $375 million offering of 5.00% convertible senior notes due 2031, with initial purchasers granted an option for an additional $56.25 million. The company paired the deal with capped call transactions that push the effective conversion threshold to $14.64 per share, a 100% premium to the recent close. Proceeds are earmarked for the capped calls and general corporate purposes.
Fermi remains a development-stage business rather than an operator. The company reported zero revenue and a $188.69 million net loss in Q1 2026, with huge capex going into Project Matador, its 7,500-acre Carson County, Texas campus targeting up to 17 GW of behind-the-meter power for hyperscalers and AI compute customers.
Peers in the Power-for-AI Trade Are Mixed
The reaction across other US-listed power-for-AI names is uneven, suggesting today’s move is Fermi-specific rather than sector-driven. Advanced nuclear developer Oklo (NYSE:OKLO) is off about 2.3% to $48.16. Small modular reactor developer NuScale Power (NYSE:SMR) is roughly flat, down 0.5%.
The larger, cash-generative names are holding up better. Constellation Energy (NASDAQ:CEG), the largest private US power producer, is essentially unchanged near $250.81. Turbine supplier GE Vernova (NYSE:GEV), which is providing the 114 MW of FR6B units that will anchor Fermi’s initial commercial capacity, is up about 2.1% to $1,097.81 and remains up roughly 65% year to date. GEV’s Q1 orders alone included $2.4 billion in Electrification equipment tied to data centers, underscoring that customer demand for gigawatt-scale power remains robust.
What is dragging Fermi is execution risk. The company still has no binding tenant agreement, an active CEO search led by Heidrick & Struggles, and a class-action lawsuit alleging overstated tenant demand. Options positioning reflects that mixed picture, with a full-chain put/call ratio of 0.18 but a spike to 2.24 on the July 24 expiry.
What to Watch
The next scheduled catalyst is Fermi’s Q2 2026 earnings release, expected before the open on August 13th. I’ll be looking for the trend toward management’s guided Q4 2026 target of roughly 200 MW of initial commercial power delivery and a binding anchor tenant.
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