Fermi Stock Charges Up Overnight: AI Energy Startup Says No Thanks To Ex-CEO’s Call For Full Sale

• Former CEO Toby Neugebauer, also the company's largest shareholder, proposed selling Fermi as a strategic pivot to boost its value. 
• Fermi said it had received significant positive feedback from multiple potential tenants, as well as from its partner on Project Matador, the Texas Tech University System.
• FRMI stock climbed about 3% in Tuesday’s overnight session.

Shares of Fermi LLC (FRMI) rose nearly 3% in Tuesday’s overnight trade after the company rejected former CEO Toby Neugebauer’s bid to sell the company, adding that the continued momentum on “Project Matador” would attract potential tenants and create long-term value for shareholders.

Earlier in the day, Neugebauer, who is also the largest shareholder of the energy and AI infrastructure company, proposed selling Fermi as a strategic pivot to boost its value.

The company also said that its board would consider the best way forward, including the execution of its new “Fermi 2.0” business plan, strategic investments from third parties, joint ventures, or other avenues.

Fermi Emphasizes Confidence In Business

Fermi said it had received significant positive feedback from multiple potential tenants, as well as from its partner on Project Matador, the Texas Tech University System.

Project Matador is Fermi’s “HyperGrid” campus in the Texas Panhandle, near Amarillo, spanning 7,570 acres, with about 6 of 17 GW of power already permitted, and another 2 GW of power-generation assets secured and en route to campus. The clean power campus is the company’s best to build the world's largest AI and energy campus. While it is yet to generate revenue, the site is expected to become operational by the end of 2026.

The company also said it had received positive feedback on its plans from its suppliers, vendors, contractors, financing sources, and other partners.

What Is Fermi 2.0

Earlier in the week, Fermi said that it is entering a “2.0” phase, shifting from startup to scaled enterprise with a focus on stronger partnerships, client outcomes, and investments in talent, tech, and infrastructure. It also said that it had formed an interim CEO office to assist with the leadership transition, had launched a CEO search with Heidrick & Struggles, and would establish headquarters in Dallas, alongside a presence at Project Matador.

“Given recent changes in leadership, which position the Company for its next chapter of growth and evolution from a startup to a scaled enterprise, the Company firmly believes a sale is not in the best interest of its continued momentum on Project Matador, ability to serve potential tenants and long-term value creation for shareholders,” the company said.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around FRMI stock slipped from ‘extremely bullish’ to ‘bullish’ territory over the past 24 hours, amid ‘extremely high’ message volumes.

FRMI stock has slumped more than 42% this year.

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