Keel Infrastructure Abandons US Bitcoin Mining Operations Amid Revenue Decline
Keel Infrastructure, formerly Bitfarms, has shut down all its U.S. bitcoin mining operations as part of a strategic pivot towards artificial intelligence (AI) and high-performance computing (HPC). The decision was made in response to the company's second-quarter revenue dropping over 50% year-over-year to $30.4 million from about $61 million in the same period last year.
The decommissioning of its U.S. mining operations is being done to prepare the sites for HPC data-center development, with three priority projects moving through permitting and discussions ongoing with prospective tenants. Keel has also been selling BTC to strengthen its balance sheet during the transition, selling 1,085 BTC for about $75 million between April 1 and August 7.
The shift highlights a broader trend among bitcoin miners looking to monetize their power-rich infrastructure by serving the rapidly growing AI market rather than relying solely on cryptocurrency mining. However, Keel's ability to secure tenants and convert its power capacity into long-term AI contracts will be crucial in offsetting the decline of its legacy mining business.