Keel Infrastructure (formerly Bitfarms) posted a heavy Q1 loss but investors appear to be betting on its AI pivot.
Key results and stock reaction
- Keel reported a net loss of $145.4 million for Q1 2026. Revenue fell 23% year‑over‑year to $37.0 million from $47.7 million, and operating loss widened to $98.4 million (vs. $34.8 million in Q1 2025). The quarter included a $41.4 million mark‑to‑market loss on digital assets and a $21.6 million loss related to extinguishing long‑term debt.
- Despite the weak quarter, KEEL shares closed at $4.30 on May 11, up 8.31% for the session, and traded $4.27 after hours (down 0.70%), according to Google Finance. Intraday ranged from $3.56 to $4.50. Market reaction suggests investors put more weight on Keel’s strategic shift than on the headline numbers.
Strategic pivot: mining to AI infrastructure
- The company completed its redomiciliation to the United States and rebranded from Bitfarms to Keel Infrastructure as part of a multi‑year transformation away from Bitcoin mining.
- Keel now positions itself as a North American developer of data center and energy infrastructure for AI and high‑performance computing (HPC). CEO Ben Gagnon said the rebrand “marks the completion of a nearly two‑year strategic transformation.” The company also said it has exited Latin American megawatts and is focusing its pipeline on North American AI markets.
Liquidity and project progress
- As of May 8 Keel reported about $533 million in liquidity, comprised of $336 million in unrestricted cash and $197 million in unencumbered Bitcoin. CFO Jonathan Mir said the liquidity “can support Panther Creek, Sharon, and Moses Lake through lease execution and cover general expenses through 2028.”
- The company said it secured zoning approvals and advanced land and environmental work at those three priority sites.
- Keel also disclosed it sold 269 BTC for roughly $20 million between Jan. 1 and May 8 as part of a planned wind‑down of its Bitcoin position.
Broader industry context
- Keel’s shift mirrors a wider trend among public Bitcoin miners pivoting part of their capacity or real estate toward AI colocation and data center projects. Core Scientific, for example, is converting its Pecos, Texas site into a 1.5‑gigawatt AI campus (with roughly 300 MW moving away from mining), and has seen self‑mining revenue decline while AI colocation grows. Marathon (MARA) has pursued a similar strategy via a Starwood partnership targeting AI data centers on power‑rich mining sites.
Bottom line
- The quarter underscores short‑term pain as Keel executes a fast‑moving strategic shift, but the market’s positive reaction indicates investor appetite for miners doubling down on AI and HPC infrastructure rather than traditional Bitcoin mining.
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