Keel Infrastructure is winding down bitcoin mining at its existing sites and rebuilding those facilities for high-performance computing and artificial intelligence workloads, placing the company’s near-term finances under pressure as it pursues longer-term data-center contracts. The strategy, led by Chief Executive Officer Ben Gagnon, followed Keel’s April rebrand from Bitfarms and coincided with a sharp decline in revenue from its remaining operations.
Keel reported $30 million in revenue from continuing operations, a 50% year-over-year decline. Its shares fell more than 11% on Monday after the results, underscoring the difficult trade-off facing miners that are reducing exposure to bitcoin production before replacement AI and cloud revenue is fully in place.
The company has also been selling bitcoin from its treasury. Between April 1 and Aug. 7, Keel sold 1,085 BTC for $75 million under a previously announced plan to reduce its holdings, leaving 1,861 BTC on its balance sheet. Those sales provided liquidity while the company redirects capital from mining equipment toward U.S. energy assets and computing infrastructure.
Mining revenue gives way to construction costs
Keel’s transition requires more than assigning former mining buildings to a different use. Bitcoin sites are designed around dense fleets of application-specific mining machines, with electrical systems and cooling arrangements built to handle a single type of computing load. Hosting AI servers or high-performance computing customers can require redesigned cooling, networking upgrades, new server racks, backup systems, and contracts for substantially more reliable power delivery.
That conversion period leaves companies exposed to a revenue gap. Mining machines can generate bitcoin every day while they are operating, although their profitability changes with bitcoin’s price, network difficulty and electricity costs. A site under reconstruction produces less or no mining income before it begins collecting rent or service fees from data-center customers.
Keel’s revenue decline illustrates the financial strain of that gap. The company is reducing a business that can generate immediate, though volatile, cash flow while spending on a data-center model where revenue depends on securing large customers and completing infrastructure work on schedule.
Gagnon had previously described Keel’s mining business as “strong” in May 2025, citing better mining economics after upgrades to the company’s mining fleet. Yet Keel said it would prioritize investment in its U.S. energy and high-performance computing portfolio rather than purchase more mining hardware.
That decision shifts the company’s operating model away from continuously expanding its bitcoin hash rate — the computing power dedicated to mining — and toward developing powered sites that could serve external computing clients. The approach could make earnings less directly linked to bitcoin’s daily price, but it also raises dependence on development execution, power availability and signed customer agreements.
Bitcoin sales support the pivot
The reduction in Keel’s bitcoin reserve has been a central source of funding for the transition. The company sold its 1,085 BTC over roughly four months at an average value implied by the disclosed proceeds of about $69,100 per bitcoin, although the actual sale prices would have varied across transactions.
Keel’s remaining 1,861 BTC still gives the company exposure to bitcoin market movements. The balance is far smaller than it would have been without the latest sales, limiting the amount of liquidity the company could generate through further disposals without materially reducing its treasury.
The company linked the speed of its conversion plans to weaker bitcoin prices and growing demand for AI computing capacity. Bitcoin traded above $110,000 in May 2025, according to the company’s comparison, versus about $64,000 at the point referenced in its discussion. Lower bitcoin prices reduce the dollar value of each coin mined and can make capital-intensive fleet expansion less attractive, particularly for operators facing rising network competition or expensive power.
Mining economics have become especially sensitive for publicly traded operators since the April 2024 bitcoin halving reduced the block subsidy paid to miners. The industry can remain profitable for operators with efficient machines and low-cost electricity, but margins are less forgiving for companies that need to fund major construction projects alongside their mining operations.
Public miners compete for AI infrastructure contracts
Keel is part of a growing group of listed bitcoin miners attempting to use their power capacity, electrical infrastructure and operating experience to participate in the AI data-center market. MARA, Hut 8 and CleanSpark have all outlined plans involving AI, high-performance computing, data-center capacity or energy infrastructure beyond traditional bitcoin mining.
The appeal is straightforward: AI computing customers can sign multi-year contracts that produce more predictable revenue than bitcoin mining. A successful hosting agreement can also make a facility’s value depend more on contracted power and technical capacity than on the spot price of bitcoin.
The hurdle is that power alone does not guarantee AI revenue. Large computing customers generally need facilities that meet demanding standards for uptime, network connectivity, cooling density and delivery schedules. Mining operators entering the market are competing not only with other miners but also with established data-center developers and cloud infrastructure providers.
Keel’s results show the cost of making that shift before new contracts replace old mining income. The company’s strategy may give it a route to monetize U.S. power assets beyond bitcoin, but the next stage depends on whether it can convert construction spending and available energy capacity into operating data centers with paying high-performance computing customers.
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