Keel’s first-quarter loss deepens during business overhaul
Keel Infrastructure Corp. reported a first-quarter 2026 net loss of $145 million as it pushed ahead with its transition from bitcoin mining to high-performance computing (HPC) and artificial intelligence (AI) infrastructure.
Revenue fell 23% from a year earlier to $37 million, reflecting the wind-down of its legacy digital asset mining operations.
Operating losses widened to $98 million, compared with $35 million in the first quarter of 2025.
Transition costs and non-cash charges weigh on results
The larger operating loss was driven by several one-off and non-cash items:
- a $41 million non-cash loss from changes in the fair value of digital assets
- a $22 million loss related to the termination of its Macquarie credit facility
General and administrative expenses rose to $27 million from $18 million a year earlier. Keel attributed the increase mainly to:
- costs tied to redomiciling the company to the U.S.
- accounting adjustments to comply with U.S. GAAP
- transaction costs linked to the sale of its Paso Pe facility, which closed on April 21
The company said these expenses are largely transitional and linked to the restructuring rather than an ongoing step-up in overhead.
Corporate overhaul and strategic focus on AI
Keel became the parent of Bitfarms Ltd. and rebranded under the Keel name on April 1, completing its move to a U.S. domicile. Management framed the quarter’s results as part of a broader strategic reset away from digital asset mining toward AI and HPC infrastructure.
The company is withdrawing from Latin America and concentrating on North American development. As part of that shift, it is liquidating a portion of its bitcoin holdings to support capital spending on new infrastructure.
Between January 1 and May 8, Keel sold 269 bitcoin for proceeds of $20 million, reducing its digital asset exposure while freeing funds for its new projects.
Liquidity supports capital-intensive pivot
As of May 8, Keel reported total liquidity of $533 million, including:
- $336 million in cash
- $197 million in unencumbered bitcoin
According to Chief Financial Officer Mir, this liquidity is expected to:
- fund development of key new HPC and AI sites at Panther Creek, Sharon, and Moses Lake through lease execution
- cover corporate and administrative costs through 2028
The company’s development pipeline totals about 2.2 gigawatts. Management has positioned long-duration leases with AI and HPC clients as the primary value driver for the next phase of growth.
Market reaction and focus on forward potential
Keel’s shares rose 8.3% to close at $4.30 on May 11, extending a run-up of roughly 50% over the preceding weeks. The share performance suggests traders are discounting the near-term losses and emphasizing the potential of the firm’s repositioning as an AI infrastructure provider.
Sentiment was supported by new research coverage from Chardan, which initiated with a Buy rating and characterized Keel as an emerging AI and HPC platform.
What to watch next
Management, led by Chief Executive Officer Gagnon, has set 2026 as a critical execution year. Key milestones for market watchers include:
- securing long-term leases for capacity at Panther Creek, Sharon, and Moses Lake
- converting portions of the 2.2-gigawatt development pipeline into contracted AI and HPC workloads
- demonstrating a gradual shift in revenue mix from legacy mining to infrastructure services
The extent to which Keel can lock in durable, high-margin contracts with AI and HPC clients will be central to assessing whether its strategic exit from bitcoin mining translates into a sustainable new business model.
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