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Reuters: Fermi Stock Plummets After Tenant Cancels $150 Million Funding

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Heartspace News Desk
Source: Reuters
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TL;DR

Fermi, a data center REIT co-founded by Rick Perry, saw its stock plummet 34% after a tenant cancelled a $150 million funding deal for its Texas "Project Matador" site, Reuters reports. With an initial $14.8 billion valuation and no current revenue, the company now faces scrutiny regarding its future amidst industry concerns of oversupply and questions surrounding artificial intelligence investments.

Key takeaways

  • Data center REIT Fermi experienced a significant stock decline of 34% following the termination of a $150 million funding agreement by a prospective tenant for its "Project Matador" site in Texas, according to Reuters
  • This development presents a challenge for Fermi, co-founded by Rick Perry, which has yet to generate revenue despite its $14
  • 8 billion valuation following its October IPO
Data center REIT Fermi experienced a significant stock decline of 34% following the termination of a $150 million funding agreement by a prospective tenant for its "Project Matador" site in Texas, according to Reuters. This development presents a challenge for Fermi, co-founded by Rick Perry, which has yet to generate revenue despite its $14.8 billion valuation following its October IPO. The company's stock price has since fallen to $10.04, nearly half its initial $21 IPO price, amid growing concerns surrounding data center oversupply and the direction of artificial intelligence investment.

Related Topics

data centersREITfundingIPOstock marketreal estateAIFermi

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