keelinfrastructure

# Keel Infrastructure (Formerly Bitfarms) Fully Exits U.S. Bitcoin Mining, Doubles Down on AI Data Centers
Keel Infrastructure Corp., the company that used to be known as Bitfarms, has officially closed the book on its U.S. Bitcoin mining business. In its second-quarter 2026 earnings report released this week, the company confirmed that as of June 29, 2026, every one of its American mining sites had been decommissioned, with the properties now being converted into artificial intelligence and high-performance computing (HPC) data centers. Combined with the earlier divestment of its Argentina and Paraguay operations, this move effectively dismantles the Latin American and North American mining footprint that Bitfarms had spent nearly a decade building.
## Selling Down the Bitcoin Stack
The mining wind-down came alongside a steady liquidation of the company's Bitcoin treasury. Between April 1 and August 7, 2026, Keel sold 1,085 BTC for roughly $75 million, leaving it with a balance of 1,861 BTC as of early August. Management has indicated it intends to continue liquidating the remaining Bitcoin holdings through the rest of 2026 to help fund its data center build-out. Even with the sales, Keel still holds a meaningful chunk of BTC on its balance sheet, valued at well over $100 million based on recent prices.
## A Rough Quarter On Paper
The numbers tell a story of a company in the middle of a costly pivot. Q2 2026 revenue came in at $30.4 million, down roughly 50% year-over-year from $60.9 million in the same period last year, largely a result of lower average Bitcoin prices and the shutdown of legacy mining sites, including the closure of the Moses Lake facility in Washington back in April. First-half 2026 revenue totaled $67.4 million.
Losses widened sharply too. The company posted a net loss of $65.0 million for the quarter and $210.3 million for the first six months of the year, compared to losses of just $5.5 million and $61.1 million over the same periods a year earlier. A big chunk of that came from $63 million in accelerated depreciation tied to shutting down mining rigs at its Panther Creek and Scrubgrass sites. Adjusted EBITDA swung to negative $23.7–24 million, versus a positive figure a year ago. General and administrative costs also jumped more than 60%, reflecting aggressive hiring of engineering and project-management talent to support the HPC transition.
## But the Balance Sheet Looks Strong
Despite the red ink, Keel's leadership has been keen to stress that the company is better capitalized than at any point in its history. As of August 7, total liquidity stood at approximately $819 million, made up of roughly $698–715 million in cash and around $121 million in unencumbered Bitcoin. That war chest was boosted in June by a $458 million convertible senior notes offering, which came in well above the initially planned $350 million raise. CEO Ben Gagnon and CFO Jonathan Mir have both framed this liquidity as giving the company room to develop its sites on its own timeline rather than being forced into rushed commercial decisions.
## Where the AI Pivot Stands
On the ground, Keel says its three priority sites are closing in on full permitting:
- **Moses Lake, Washington** — on track to become Keel's first fully permitted data center, with commissioning targeted for 2027 and permitting expected by late Q3 2026. Initial Vertiv power modules have already been accepted on site.
- **Panther Creek, Pennsylvania** — has secured 350 MW of power capacity, with potential expansion to 500 MW or more, and is expected to be power-ready in 2027.
- **Sharon, Pennsylvania** — has secured zoning and land-development approval, with environmental permits progressing.
Beyond these three, Keel is also advancing a roughly 2-gigawatt Pennsylvania expansion pipeline, with an update expected around December or January, and has signed an agreement in Sherbrooke, Quebec, for the conditional transfer of 96 MW of power capacity tied to a potential Canadian HPC and AI facility. Management says several potential tenants are already in discussions for the converted sites, though no binding leases have been announced yet.
## Why This Matters for the Broader Market
Keel's transformation is part of a much bigger trend sweeping through the Bitcoin mining sector in 2026. Several large-scale miners have been redirecting their power infrastructure — arguably their most valuable asset in an AI-hungry economy — away from Bitcoin hashing and toward renting compute capacity to AI and cloud companies. The logic is straightforward: with hashrate difficulty climbing and mining margins compressing, the same megawatts that once powered ASIC rigs can often generate far more predictable, higher-margin revenue under a long-term HPC lease.
For Bitcoin holders and miners watching this trend, Keel's move raises a familiar question: does the industry-wide shift of power capacity away from mining act as a long-term tailwind for network difficulty and decentralization, or does it simply mark natural consolidation as unprofitable operators exit? Either way, Keel's stock reaction — shares fell over 11% following the earnings release — shows that Wall Street is still digesting whether the AI pivot will pay off before the balance sheet is tested further.
Keel's next major checkpoints will be the completion of permitting at Moses Lake, progress on the Pennsylvania power pipeline, and — perhaps most closely watched by the crypto community — how quickly the remaining 1,861 BTC gets sold down as the company completes its transformation from Bitcoin miner to AI infrastructure developer.
#Bitcoin #KeelInfrastructure
#BitfarmsMining #AIDataCenters #CryptoMining