Keel Infrastructure, formerly known as Bitfarms, is leaving much of its bitcoin mining business behind as it makes a bigger push into artificial intelligence (AI) infrastructure and high-performance computing.
The company has shut down its U.S. bitcoin mining operations and sold a large portion of its BTC holdings as it works through the transition.
The move is part of a wider shift across the bitcoin mining industry, with miners increasingly looking to AI and data-center businesses as demand for computing power continues to grow.
Bitcoin miners already have something AI companies need. These include large facilities, access to power, and infrastructure built to handle high computing loads. As a result, companies that once focused almost entirely on mining Bitcoin are now looking to put those resources to work in AI and high-performance computing.
Keel is following a path already taken by other major miners, including Bitdeer, MARA and Hut 8, which have also expanded into AI-related infrastructure.
Analysts at Bitunix say, “ The central tension in the AI industry is increasingly shifting toward capital efficiency and the ability of valuations to withstand higher financing costs.”
Keel sees shares slip by big margin
The transition, unfortunately, has not been smooth for Keel’s stock. Shares of Keel Infrastructure have fallen 11.57 percent amid reports of delayed government contracts and rising project costs. The stock has dropped from around the $5 level to the mid $3 range, putting it below recent resistance levels and weakening its short-term momentum.
Trading during the day has been relatively quiet, with KEEL moving around the $3.40-$3.50 range.
That sideways action comes after the stock opened sharply lower, suggesting investors are still trying to figure out whether the sell-off has run its course or whether more downside is coming.
Keel Q2 results
The company’s financial numbers add another layer of uncertainty. Keel generated around $229.3 million in annual revenue, but it also reported a quarterly net loss of roughly $145.4 million.
Its cash flow remains negative, which could become a concern if the company needs to spend heavily to build out its AI infrastructure.
Keel has about $357.3 million in cash, giving it some room to fund its plans. However, it also carries around $573.2 million in long-term debt.
That debt load is likely to remain on investors’ radar, especially if project costs continue rising or expected government contracts take longer to materialize.
The decision to sell a large portion of its bitcoin holdings is another major change for the company. Bitcoin miners have traditionally held some of their mined BTC on their balance sheets, giving them exposure to potential increases in bitcoin’s price.
Keel’s decision to sell a significant amount suggests the company is instead looking to free up capital for its new infrastructure strategy.
The big question now is whether the AI pivot can deliver enough growth to make up for the company’s retreat from bitcoin mining.
For traders, the immediate level to watch is around $3.30-$3.40. If KEEL manages to hold that area, the stock could find some stability after the recent decline. But a sustained break below it could open the door to another move toward previous lows.
Keel’s shift into AI gives it exposure to one of the fastest-growing areas of the technology industry, but it also comes with plenty of uncertainty. Rising costs, delayed contracts, losses and a sizable debt burden mean the company has little room for execution mistakes.
For now, investors are waiting to see whether Keel can turn its costly transition from a bitcoin miner into a sustainable AI infrastructure business.
