General Fusion rises 40% in Nasdaq debut despite heavy SPAC redemptions
The first publicly traded fusion company saw its stock surge, but heavy de-SPAC redemptions and a delayed breakeven timeline underscore the immense capital hurdles facing the sector.
General Fusion began trading on the Nasdaq on Monday under the ticker GFUZ, becoming the first publicly listed fusion power company. The stock rallied 40 percent from its $12.85 reference price by early afternoon, beating rival TAE Technologies to the public markets by several months.
Beneath the initial market enthusiasm, the mechanics of the transaction reveal the structural difficulties of funding pre-revenue energy ventures through a special purpose acquisition company. General Fusion completed its reverse merger with Spring Valley Acquisition Corp. III last week after announcing the deal in January. While the SPAC deal had the potential to add $230 million to the balance sheet, heavy investor redemptions have severely diminished the take. According to a report in the Globe and Mail, General Fusion will likely net less than $30 million from the merger after accounting for redemptions and fees.
To compensate for the shortfall, General Fusion concurrently raised $108 million from private investors. The company stated it now holds approximately $150 million in total cash. This liquidity provides a crucial runway for a business that was navigating severe financial distress just months ago.
Before the Spring Valley deal materialized, General Fusion had been trying to raise $125 million. When that effort failed to materialize by May 2025, the company slashed at least 25 percent of its staff. The situation grew dire enough that existing investors were forced into a $22 million "pay to play" round in August 2025 simply to keep the company afloat.
For investors, the company's recent history highlights the immense capital requirements and execution risks inherent in commercial fusion. Those funding constraints have already bled into the technical timeline. General Fusion had originally targeted scientific breakeven on its LM26 device this year, but that milestone has slipped to 2028 or later. The company now says it aims to turn on its first power plant "by approximately 2035."
Founded in 2002, General Fusion is one of the oldest companies in the sector and has raised over $600 million privately across its lifetime. Its magnetized target fusion technology relies on electromagnetic fields to create a superheated plasma inside a chamber lined with liquid lithium. The company now says "synchronized mechanical drivers" will compress the lithium blanket to trigger fusion, shifting away from previous references to steam-powered pistons.
