Keel Infrastructure Sells Last Bitcoin as Clock Ticks on Hyperscaler Leases

Keel Infrastructure, formerly Bitfarms, liquidates all Bitcoin by year-end to focus on AI data centers. No leases signed yet; stock volatile awaiting execution.

Keel Infrastructure is executing a clean break with its past — and betting its future on a signature. The company, which emerged from the ashes of the Bitcoin miner Bitfarms in April 2026, now plans to liquidate its remaining crypto holdings by year-end while it scrambles to ink the first leases for its AI-focused data center pipeline. Neither task is complete.

The stock market delivered a split verdict on Monday. Shares initially surged 17 percent to $7.36 before reversing course to close at $6.60 — a sign that investors are cheering the strategic clarity but remain skeptical about execution. The dual narrative of a final crypto exit and a still-unfilled lease pipeline creates a fragile equilibrium.

A Radical Cleanup of the Balance Sheet

CFO Jonathan Mir confirmed on an investor conference that the company is selling off its entire Bitcoin stash on a fixed timeline. In the first quarter, Keel held unrestricted Bitcoin worth approximately $197 million. Partial sales occurred between January and May; the remainder will be offloaded in tranches through December. The move eliminates the wild swings that Bitcoin price fluctuations previously imposed on reported earnings, sharpening the focus on Keel's core business.

That core business is no longer mining. Keel sold its 70-megawatt Paso Pe facility in Paraguay and repositioned as a developer of high-performance computing and AI data centers, exclusively in North America. Today it controls access to 2.2 gigawatts of current and potential capacity spread across sites in Pennsylvania, Washington State, and Quebec.

Power without a Tenant Is Just Potential

CEO Ben Gagnon has outlined a target of three signed leases by the end of 2026 — one each for the Panther Creek, Sharon, and Moses Lake locations. Keel's model is to offer powered shell and colocation services to hyperscalers and neoclouds, not to operate GPUs itself. That limits capital intensity and margin pressure, but it means revenue only begins when a tenant signs.

So far, no signature.

The company is deliberately waiting for building permits to come through before negotiating terms, betting that regulatory clarity will allow it to lock in better conditions with investment-grade counterparties. That patience costs investor visibility. Applied Digital recently signed a 15-year lease worth roughly $5.2 billion for 210 megawatts with a U.S. investment-grade hyperscaler — precisely the type of anchor deal Keel still lacks.

Cash to Last, but No Tailwind Yet

Keel raised $400 million in convertible notes at 1.25 percent interest maturing in 2032. Combined with existing liquidity, management says that cushion will fund the development of Panther Creek, Sharon, and Moses Lake through lease signing, start construction at Moses Lake, and cover general corporate expenses into 2028. It is a meaningful runway.

Below the headline, the legacy business is fading fast. First-quarter 2026 revenue from continuing operations came in at $37 million, a 23 percent drop year over year. The operating loss reached $98 million, and free cash flow was deeply negative at roughly minus $75 million. Bitcoin mining revenue is shrinking faster than AI income can replace it.

Scrubgrass: The Long Bet

Beyond the three near-term sites lies a project that rarely makes headlines but could define Keel's scale. Management calls Scrubgrass its "largest long-term development opportunity." The 650-acre site can support up to 1.3 gigawatts of potential expansion. Keel has filed load studies for 750 megawatts and is evaluating, together with a natural gas company, whether to build an on-site power generation facility exceeding 550 megawatts.

Scrubgrass is a story for 2027 or later. It underscores, however, the kind of platform Keel is assembling — and why the stock commands attention despite the missing leases.

The Gap between Platform and Proof

Keel has secured zone approvals, pushed site development forward, and filed environmental permits. The power is real. The demand from AI customers is real. What remains absent is the contract that converts potential into contracted cash flow — the basis for construction financing and a tangible valuation.

The third and fourth quarters of 2026 will determine whether Gagnon can deliver on his three-lease promise. Until then, Keel Infrastructure trades on hope for a signature that has yet to come.