Keel Infrastructure is completely winding down mining in the US: betting on AI data centers
The American mining sector continues its radical transformation. Keel Infrastructure, formerly known as Bitfarms, has officially decommissioned all of its mining capacity in the United States. This marks a strategic pivot: the sites are being prepared for repurposing into high-tech data centers focused on the needs of artificial intelligence and high-performance computing (HPC). This is confirmed by the company's quarterly report.
In parallel with halting mining, Keel continues to aggressively offload its bitcoin reserves. Between April 1 and August 7, it sold 1,085 BTC worth approximately $75 million. The company's balance sheet retains 1,861 BTC. Such a move appears logical in the context of a complete abandonment of mining as its core business.
The quarter's financial results demonstrate the depth of the transformation. Revenue fell by half to $30.4 million, attributed to a decline in the average price of the leading cryptocurrency and the halt of mining at the Moses Lake facility in Washington back in April. Operating loss reached $141 million, while net loss stood at $65 million. Administrative expenses rose from $19 million to $31 million, linked to hiring specialized professionals to manage AI projects. Meanwhile, total liquidity remains high at $819 million, including $698 million in free cash.
CEO Ben Gagnon clearly articulates the strategy: "Energy capacity is the primary constraint. Everything else is derived from it." The company is betting on access to electricity, yet no signed lease agreements have been presented in the report so far. Nevertheless, Keel already holds uncontracted capacity for 2027 within the PJM operator zone—the largest in the U.S.
Against this backdrop, Keel's shares on Nasdaq plunged more than 12% in a single trading session, reflecting investor skepticism regarding the timeline and profitability of the AI transition.
Bitdeer: Mining grows, but AI is the priority
Unlike Keel, Bitdeer continues to ramp up mining while simultaneously developing its AI segment. In the second quarter, the company mined 2,694 BTC—nearly five times more than a year earlier. Average hash rate reached 69.5 EH/s. Revenue grew 47% to $228.8 million, with mining contributing $168.4 million.
However, losses were not absent here either: net loss widened to $92.3 million. The company is actively shifting its energy portfolio toward AI tasks. A 16-year agreement was signed for the Tydal data center in Norway, with potential revenue of $4.7 billion. In the U.S., the Rockdale facility (563 MW) is planned for repurposing into colocation and AI Cloud services. The total energy portfolio is estimated at nearly 3 GW, yet Bitdeer's shares also fell 20% in the last session.
My comment: We are witnessing a classic dilemma of the era. Miners possessing unique energy resources are trying to monetize them through AI, but the market does not yet believe in quick returns. The decline in both companies' shares is a signal that investors need concrete contracts, not promises. The transition from mining to AI is not merely a rebranding but an extremely complex operational and financial marathon that not everyone will survive.