Key Takeaways:
Keel Infrastructure has decommissioned all its US Bitcoin mining operations, selling 1,085 BTC for $75 million to fund a pivot into AI data centers.
"Power is the constraint. Everything else is downstream of it," Ben Gagnon, chief executive officer at Keel Infrastructure, said in the company's second-quarter earnings release.
Revenue from continuing operations fell 50 percent year-over-year to $30 million in Q2, swinging to a net loss of $64 million from a $13 million profit a year earlier. The company sold 1,085 BTC between April 1 and August 7, raising approximately $75 million, while retaining 1,861 BTC valued at about $121 million as of Aug. 7.
Keel holds $819 million in liquidity — $698 million in unrestricted cash plus the Bitcoin position — backed by a $458 million convertible bond issuance in Q2. The company has secured zoning approvals at its Panther Creek and Sharon sites and agreed to take over 96 MW of capacity at a data center in Sherbrooke, Quebec.
The former Bitfarms has idled all its US mining fleets to make room for high-performance computing centers. The company closed its Moses Lake, Washington facility in April, contributing to the revenue decline. Operating loss reached $141 million, including $84 million in non-cash depreciation expenses.
CFO Jonathan Mir said Keel "is in a better capital position today than at any point in the company's history." The stock fell more than 11 percent to approximately $3.45 following the earnings release.
Miners' Collective Pivot to AI
The move reflects a broader industry shift. CoinShares data shows the weighted average cash cost to mine one Bitcoin reached approximately $79,995 in Q4 2025, while Bitcoin traded between $68,000 and $70,000 — a loss of nearly $19,000 per coin. Public miners' collective Bitcoin reserves have declined by more than 15,000 coins from their peak.
Announced AI and HPC contracts across the listed mining sector now exceed $70 billion. Bitdeer reduced its Bitcoin holdings to zero in February, MARA Holdings agreed to acquire a 505 MW natural gas power plant in Ohio for $1.5 billion, and IREN signed a five-year, $3.4 billion cloud services contract with Nvidia. Core Scientific, TeraWulf, Hut 8, and Cipher Digital have also secured multi-billion dollar AI agreements.
Bitcoin traded at $64,220, down 1.17 percent over 24 hours, as of Aug. 11.
For investors, the pivot offers a potential re-rating: the BTC sales provide immediate liquidity while the AI transition could attract institutional interest from the traditional tech sector. The retained 1,861 BTC also preserves upside exposure to cryptocurrency prices. However, the transformation requires significant capital and technical expertise, and the market's 11 percent selloff on the announcement suggests execution risk remains a concern.
This article is for informational purposes only and does not constitute investment advice.
