Keel Abandons US Bitcoin Mining as it Pivots to AI Data Centers

Keel Infrastructure has ended its U.S. Bitcoin mining operations to focus on artificial intelligence and high-performance computing data centers, citing a $65 million loss in Q2 revenue. The company's decision comes as it prepares sites for HPC development at its Washington and Pennsylvania locations, where no HPC revenue has yet been generated.

The shift away from U.S. Bitcoin mining is part of Keel's broader strategy to redirect power-intensive infrastructure originally built for cryptocurrency mining towards AI computing. In Q2, Keel sold 1,085 BTC for $75 million, leaving a remaining balance of 1,861 BTC valued at approximately $121 million.

The company raised $458 million through 1.25% convertible senior notes due in 2032 during the second quarter to support power capacity expansions at its Pennsylvania properties, including Panther Creek and Scrubgrass. Keel's total liquidity reached approximately $819 million as of August 7, comprising $698 million of unrestricted cash and $121 million of unencumbered Bitcoin.

The transition is already visible in Keel's financial results, with revenue from continuing operations falling to $30.4 million from $60.9 million a year earlier. The company has not yet completed permits for HPC development at its Pennsylvania sites, and no HPC revenue has been generated at either location.

Keel continues to operate legacy Bitcoin mining assets in Canada while pursuing further HPC conversions, including a proposed 96 MW data center campus in Sherbrooke, Quebec. The company's next test is whether it can convert retired mining sites into contracted AI infrastructure and generate revenue from HPC operations.