Firmus Slashes IPO Price 25% to A$8.25 as Investor Demand for AI Data Centers Weakens

Firmus closed books on its IPO without confirmed pricing or structure after demand failed to materialize. The company, which began as a Bitcoin miner in 2019, secured a $10 billion Blackstone-Coatue debt package in February and raised private rounds at $5.5 billion then $10.5 billion valuations by August. It has completed only 42 MW of a claimed 1 GW pipeline. The 25 percent haircut leaves equity value below outstanding debt obligations according to Reuters Breakingviews calculations. The pattern matches SoftBank's SB Energy data center IPO withdrawal two weeks earlier. Both deals relied on forward valuations that assumed rapid capacity ramp and sustained AI capex growth. Primary records show Firmus debt covenants tied to construction milestones that remain unmet, while equity investors now price in execution risk rather than narrative multiples. Goldman Sachs Sydney noted weak foreign participation before the bookbuild was advanced three days. Maas Group shares dropped 30 percent on exposure concerns. Australian fund managers labeled the deal a short candidate citing 30 separate valuation and governance flags. The episode reveals the gap between private round pricing and public market willingness to fund unbuilt infrastructure at three times prior marks. Further price concessions or outright withdrawal remain possible if commitments stay below 60 percent of target. Similar pressure now extends to other data center developers holding large Blackstone or Coatue exposure, tightening the capital window for the sector through year-end.