FRMI

FRMI is trying to assemble land, power, and permits for data-center development without the capital required to build the project itself. There is plenty of build-with-other-people's-money theater here, but the macro direction—scarce power for data centers—is real.

My short thesis is therefore not that every asset is worthless. It is that the market is paying too much for an undeveloped bundle whose value still depends on financing, credible tenants, and execution.

The plan is straightforward on paper: secure the site, produce or obtain power, and lease both land and electricity to data-center tenants. In practice, the company needs billions of dollars and appears to need a tenant commitment before lenders will fund construction.

Investors can jump from 'data centers need power' to 'therefore every permitted power site is enormously valuable.' That skips the hard middle: capital, counterparties, governance, construction, and time.

Repeated tenant speculation may create temporary value in the stock without creating a contracted tenant or funded project.

The permits, queue positions, and site control could be more valuable than I estimate. A strategic buyer may be willing to pay for saved time even if FRMI cannot finance the project itself.

• A credible tenant signs a lease and supplies meaningful project funding.
• A well-funded buyer acquires the company primarily for its permits or queue position.
• The company secures construction financing on terms that do not destroy common-equity value.

A binding, well-funded tenant agreement would do far more to disprove the thesis than another rumor. A strategic acquisition that explicitly values the permits and queue rights would also invalidate a major part of my skepticism.