End of an era: Keel Infrastructure completely shuts down Bitcoin mining in the U.S. in favor of AI
The strategic pivot we have been observing in the industry for over a year has reached its culmination. Keel Infrastructure, formerly known as Bitfarms, has officially decommissioned all of its mining capacity in the United States. This is not just a reduction — it is a complete dismantling of the old business model. Sites where ASIC miners were recently humming are now being prepared for transformation into high-tech data centers focused on AI workloads and high-performance computing (HPC).
Financial Report: The Price of Transformation
The second-quarter figures clearly demonstrate how costly this transition is. Keel's revenue fell by half — to $30.4 million, which management attributes to the decline in the average bitcoin price and the halt of mining at the Moses Lake facility in Washington back in April. Administrative expenses, meanwhile, jumped from $19 million to $31 million — the company is actively hiring specialized professionals to manage new projects.
The operating loss reached $141 million, and the net loss was $65 million, compared to a profit of $5.5 million a year earlier. Adjusted EBITDA went deep into the red at negative $24 million. In parallel, Keel continues to sell off its bitcoin reserves: from April 1 to August 7, it sold 1,085 BTC for $75 million, leaving 1,861 BTC on its balance sheet. Total liquidity stands at $819 million, providing the company with a safety cushion for maneuvering.
Betting on Energy
CEO Ben Gagnon articulates the strategy with utmost clarity: "Energy capacity is the main constraint. Everything else is derived from it." The company is betting on access to electricity, and according to him, all three priority sites are close to obtaining the full package of permits. Keel already has uncontracted capacity for 2027 within the PJM operator zone — the largest power grid in the United States.
However, there is an important nuance that makes me view this optimism with caution: not a single signed lease agreement has been presented in the report. This means that the entire transition to AI rails currently exists only as intentions and negotiations, albeit with several potential tenants for each site. The market, apparently, assesses the risks similarly: Keel's shares on Nasdaq plunged more than 12%.
Against this backdrop, Bitdeer's report looks contrasting — it managed to increase mining output nearly fivefold, to 2,694 BTC, and grow revenue by 47% to $228.8 million. But here too, we see the same trend: the net loss widened to $92.3 million, and the company is actively repurposing its facilities, including the giant Rockdale site (563 MW), for AI. Notably, even with revenue growth, Bitdeer's shares fell 20% during the session.
My analysis: We are witnessing a classic transformation dilemma. Miners are sacrificing current profits for future contracts with AI giants, but the market does not yet believe in the quick payback of these investments. The decline in both companies' shares indicates that investors demand concrete signed agreements, not promises. Keel and Bitdeer are in a race for the future, but the price of that future is currently measured in billion-dollar losses. The only question is who will be the first to sign that coveted contract that justifies all these sacrifices.