Keel Infrastructure Widens Losses Amid Shift to AI Data Centers

Keel Infrastructure, a company transitioning from Bitcoin mining to high-performance computing and artificial intelligence data centers, reported wider second-quarter losses. The quarterly revenue was $30 million, down from $61 million a year earlier, primarily due to lower average Bitcoin prices.

The operating loss for the quarter was $141 million, compared with an operating income of $11 million in the prior-year period. Adjusted EBITDA was negative $24 million, compared with positive $7 million a year earlier.

Keel's CEO Ben Gagnon stated that the 'defining constraint' for AI infrastructure is power rather than chips or capital. The company has spent 18 months repositioning its business and is now in active commercial discussions with potential tenants at three priority sites, including Moses Lake, Washington; Sharon, Pennsylvania; and Panther Creek, Pennsylvania.

Keel's liquidity stood at $819 million as of August 7, up from $533 million at the beginning of May. The company plans to assess additional capital needs after lease agreements are signed, when it believes its cost of capital could decline.