Keel Shuts Down U.S. Bitcoin Mining, Shifts to AI and HPC

Keel Infrastructure has quietly closed the book on U.S. Bitcoin mining and is repositioning its American power footprint for artificial intelligence and high-performance computing (HPC) — a move that highlights a growing trend among public miners as crypto economics soften. What happened - Keel — the former Bitfarms business that redomiciled from Canada to Delaware on April 1 and now trades on Nasdaq as KEEL — disclosed the U.S. exit with its Aug. 10 Q2 results. The company decommissioned all U.S. Bitcoin mining operations in stages: mining at its Washington site ended April 28 (the site is being converted into an 18 MW HPC facility), and mining at three Pennsylvania sites (Panther Creek, Scrubgrass and Sharon) stopped on June 29. - The shift is not a global mining exit. Keel continues to run legacy Bitcoin miners in Canada while seeking approvals to convert Canadian capacity to HPC and AI workloads, including a proposed 96 MW campus in Sherbrooke, Quebec. Financial fallout and liquidity - Q2 revenue fell 50% year‑over‑year to $30.4 million; Bitcoin mining revenue plunged by roughly $29.6 million. The company posted a net loss of about $65 million and an operating loss of $141 million (it had operating income of ~$11 million a year earlier). Loss from continuing operations was $64 million. - Keel sold 1,085 BTC between April 1 and Aug. 7 for roughly $75 million. Its remaining treasury was 1,861 BTC, which the company values at about $121 million for liquidity reporting. Management said its “intent is to liquidate our Bitcoin position in 2026,” signaling more disposals ahead but without a fixed timetable. - Total liquidity stood at approximately $819 million as of Aug. 7 — $698 million cash plus $121 million in unencumbered Bitcoin — up from about $533 million reported in May. Keel also raised $458 million in the quarter via 1.25% convertible senior notes due 2032, capital earmarked partly to support added power capacity at the Pennsylvania sites. Power reuse and development status - A core driver of the pivot is repurposing power infrastructure built for crypto mining to host energy-intensive AI and HPC workloads. Panther Creek and Scrubgrass continued to sell electricity after miners were shut off; as of Aug. 7 they had roughly 60 MW and 63 MW of energized capacity, respectively, that was not contracted under an electric supply agreement. Sharon is being prepared for a planned 110 MW HPC data center. - Despite the operational shutdowns, Keel had not yet begun HPC operations or recognized any HPC revenue at the Washington or Pennsylvania sites as of the reporting date. That leaves the transition squarely in the development phase: tenants must be signed, permits secured, construction completed and new revenue streams proven. - Permitting is a mixed picture. Panther Creek and Sharon received zoning and land development approvals, though environmental permits are still in progress. Panther Creek reportedly has 350 MW of secured utility capacity and a possible earliest ready-for-service date in 2027. - CEO Ben Gagnon said there are “multiple prospective tenants negotiating for each one” of the three priority sites, but Keel has not disclosed any signed leases or named customers. Operational and cost impacts - The quarter included large noncash depreciation tied to the retirement of mining infrastructure at Panther Creek and Scrubgrass. General and administrative expenses jumped to $31.3 million from $19.4 million a year earlier, driven by stock compensation, U.S. redomiciliation professional costs, and hiring for data center development. - The U.S. accounted for a smaller share of revenue: 37% in Q2 versus 51% a year earlier. U.S. revenue fell by $19.9 million year‑over‑year, attributed to lower Bitcoin prices, higher network difficulty, and the April Washington shutdown. Industry context and what to watch Keel’s strategy mirrors a broader pattern among listed Bitcoin miners: as mining economics ebbed in 2026, several operators began redirecting capital and electrical capacity toward AI hosting and data centers. For Keel, the critical tests now are commercial — signing tenants, finalizing environmental permits, and converting retired mining sites into contracted AI infrastructure that generates recurring revenue. Bottom line: Keel has taken concrete steps — miners powered down, equipment marked for sale, capital raised — to move from mining to AI/HPC. But until permits are finalized, customers are contracted, and the sites begin producing HPC revenue, the company’s U.S. pivot remains a high‑stakes development story rather than an established new business line.