Keel disclosed that it had ceased all U.S. Bitcoin mining operations by the end of June and redirected its power assets in Washington and Pennsylvania toward AI and high-performance computing data centers. The company revealed this adjustment in its second-quarter earnings report. Revenue for the period declined 50% year-over-year to $30.4 million, with a net loss of approximately $65 million.
All U.S. mining operations have been shut down.
The announcement states that Keel's exit from the U.S. is being completed in phases. The Washington state mine was shut down on April 28 and is being repurposed into an 18 MW high-performance computing data center. The Panther Creek, Scrubgrass, and Sharon sites in Pennsylvania ceased mining operations on June 29.
This means Keel no longer maintains its Bitcoin mining operations in the United States, but has not fully exited the global mining industry. The company continues to operate its existing mines in Canada and is advancing the transition of additional capacity toward high-performance computing and AI workloads.
Sell Bitcoin and add cash
The company disclosed that it sold a total of 1,085 BTC during the second quarter, generating approximately $75 million in proceeds. As of August 7, the balance sheet still held 1,861 BTC. Total liquidity during the same period amounted to approximately $819 million, including $698 million in cash and $121 million in unpledged Bitcoin reserves.
Management also indicated plans to continue disposing of the remaining Bitcoin holdings in 2026. Meanwhile, the company raised $458 million in the second quarter through convertible senior notes maturing in 2032 with a coupon rate of 1.25%, with part of the proceeds allocated to expanding power capacity for the Pennsylvania project.
- Bitcoin sold: 1,085 BTC
- Open position as of August 7: 1,861 BTC
- Total liquidity: approximately $819 million
Declining mining income has impacted performance.
From a financial performance perspective, the transition costs have already been reflected in the results. Keel’s revenue from continuing operations decreased from $60.9 million in the same period last year to $30.4 million. This decline was primarily due to a $29.6 million reduction in bitcoin mining revenue, driven by lower average bitcoin prices, increased network difficulty, and a contraction in U.S.-based mining activities.
The decline in U.S. business was more pronounced. The U.S. business revenue share dropped from 51% in the same period last year to 37%. U.S. business revenue decreased by $19.9 million compared to the same period in 2025. The company also recorded an operating loss of $141 million, compared to an operating profit of approximately $11 million in the same period last year.
Administrative and management expenses increased from $20.4 million to $31.3 million. The company stated that this was due to equity-based compensation, professional fees related to the corporate relocation to the U.S., and hiring for data center development.
The AI data center has not yet generated revenue.
The company disclosed that, as of August 7, the Washington State and Pennsylvania projects had not yet commenced high-performance computing operations, nor had any related data center revenue been recognized. Currently, these assets remain in the development and leasing phase, rather than constituting new businesses with stable cash flows.
Management states that all three key sites are in discussions with potential tenants, but no customer names have been disclosed, nor have any formal leases been signed. Regarding approvals, Panther Creek and Sharon have obtained zoning and land development permits, while environmental permits are still being pursued. Panther Creek has secured 350 MW of utility capacity and is expected to be operational as early as 2027.
Additional information: Keel, formerly part of Bitfarms' operations, relocated its incorporation from Canada to the United States on April 1 and is now a Delaware corporation trading on Nasdaq under the ticker symbol KEEL.