Keel's High-Stakes AI Pivot: Deep Losses Mask a $533M Infrastructure Bet

NEW YORK, NY – May 11, 2026 – Keel Infrastructure Corp. today unveiled first-quarter financial results that, on the surface, paint a grim picture: falling revenue, widening losses, and negative cash flow. Yet beneath the red ink lies the story of a radical, high-stakes transformation. The company, which just completed its rebranding from Bitcoin miner Bitfarms Ltd., is aggressively shedding its past to chase a far larger prize: building the foundational energy and data infrastructure for the artificial intelligence revolution, backed by a formidable $533 million in liquidity.

The company reported a net loss of $145.4 million for the quarter ended March 31, 2026, a stark increase from the $55.6 million loss in the same period last year. Revenue from continuing operations fell 23% to $37 million, while the operating loss ballooned to $98.4 million. These figures reflect the costly and complex process of a nearly two-year strategic overhaul, including a redomiciliation to the United States, the sale of its Latin American assets, and significant one-time expenses.

A Painful but Planned Transition

The Q1 2026 financial report details the cost of Keel's pivot. The operating loss was heavily impacted by a non-cash charge of $41.4 million related to the changing fair value of its digital asset holdings—a volatile remnant of its Bitcoin-centric past. General and administrative expenses also swelled to $26.8 million, up 52% year-over-year, driven by professional fees for its U.S. redomiciliation and conversion to U.S. accounting standards.

Adjusted EBITDA, a key measure of cash profitability, swung from a positive $6.9 million in Q1 2025 to a negative $16.7 million in the latest quarter. The company attributes this decline to a $15 million increase in energy and infrastructure expenses and an unfavorable swing in gains from selling digital assets. This financial performance underscores the drag from legacy operations as the company races to build its new business model.

“Our rebranding to Keel Infrastructure marks the completion of a nearly two-year strategic transformation,” said CEO Ben Gagnon in a statement. He emphasized the company’s new focus on “some of the highest-demand and most supply constrained HPC/AI markets in North America.” Gagnon’s message is clear: the short-term pain is a necessary investment in a long-term vision.

The Multi-Billion Dollar AI Prize

Keel is betting its future on the explosive growth of the high-performance computing (HPC) and AI data center market. Industry forecasts project the global market for AI infrastructure to grow at over 30% annually, potentially exceeding $900 billion by 2029. This growth is fueled by the insatiable demand for computing power from AI models, which require specialized data centers capable of handling power densities that dwarf traditional facilities.

This is the niche Keel aims to dominate. The company is positioning itself not as a competitor to cloud giants like Amazon and Microsoft, but as an essential infrastructure partner. Keel's strategy is to develop and own the physical campuses—the land, buildings, power substations, and grid connections—that these tech giants need to deploy their AI platforms at scale. With power availability emerging as the primary bottleneck for AI expansion, Keel's focus on securing large-scale energy interconnections is its core value proposition.

Building the Foundation for AI

Keel's ambition is backed by a tangible development pipeline totaling 2.2 gigawatts of power capacity across North America. The company highlighted significant progress at three key near-term sites:

• Panther Creek, Pennsylvania: A planned 350 MW data center campus. The state is an emerging hub for AI infrastructure, and Keel is positioning this site to capture that growth, with groundbreaking expected in late 2025.

• Sharon, Pennsylvania: Following recent zoning approval, Keel is expanding this former industrial site into a 110 MW data center. Located within the PJM Interconnection, the largest U.S. wholesale electricity market, the site offers access to competitively priced power, a critical advantage for energy-intensive AI operations.

• Moses Lake, Washington: This site represents Keel's first active conversion of a legacy Bitcoin mining facility into an AI-ready data center. The initial 18 MW phase will leverage the region's low-cost, renewable hydroelectric power from the Columbia River. The company has already placed a $128 million order for modular cooling and power infrastructure for the retrofit, signaling its commitment to a rapid build-out.

“With that work done, we now enter this new chapter with strong momentum and the clear strategic vision of advancing Panther Creek, Sharon, and Moses Lake development and through lease execution in 2026,” Gagnon stated.

A Race Against Time and Burn Rate

The central challenge for Keel is a race against time. The company must successfully execute its capital-intensive development plan and secure long-term leases with major AI tenants before its cash reserves are depleted by ongoing operational losses and construction costs.

CFO Jonathan Mir, an infrastructure finance veteran from Lazard and Bank of America, expressed confidence in the company's financial footing. “Our liquidity stands at approximately $533 million,” he said. “This fully funds the capital required to advance Panther Creek, Sharon, and Moses Lake through lease execution, start of construction at Moses Lake, and covers our G&A through 2028.”

This liquidity is comprised of $336 million in cash and $197 million in unencumbered Bitcoin, which the company is systematically selling to fund the transition. While this war chest provides a significant runway, the company also carries inherited liabilities, including nearly $600 million in convertible notes, that could pose future challenges. The success of this grand pivot hinges entirely on execution. Keel has the vision, the leadership, and the capital to make a serious play in the AI infrastructure gold rush. For investors, the question is whether this infrastructure-first approach can build a profitable future before the legacy losses and capital burn deplete its formidable war chest.