Keel Infrastructure (KEEL) shares extended their recent rally on Friday, climbing 2.1% to $5.69, as investor enthusiasm for the company's pivot from bitcoin mining to artificial intelligence data centers continued to build. The stock has surged 32.6% over the past five trading sessions and is up 86.7% month-to-date, according to TradingView data.
The company, formerly known as Bitfarms, has repositioned itself as a North American digital and energy infrastructure firm focused on high-performance computing (HPC) and AI data centers. Despite this strategic shift, Keel has yet to secure its first colocation lease, where customers rent data center space along with power and cooling. The company's market capitalization now stands near $3.4 billion, still below its 52-week high of $6.60.
On Friday, Keel shares traded in a range of $5.25 to $5.77, with approximately 28.4 million shares changing hands, below the average daily volume of 39.2 million, according to Robinhood. The broader market was firmer, with the S&P 500 tracking toward its ninth consecutive weekly gain, while the Nasdaq was flat. Investors also monitored U.S.-Iran ceasefire talks, which contributed to a slight decline in crude oil prices.
Keel's recent rally is driven by investor speculation that its power assets, land holdings, and permits will translate into lucrative colocation deals. The company's investor page highlights a 2.2-gigawatt pipeline, a common measure for large utility-scale projects. Key sites include Panther Creek, Sharon, and Moses Lake, where zoning has been finalized, while land development and environmental permits are still in progress.
However, the company's first-quarter financial results reveal significant challenges. Revenue from continuing legacy operations fell 23% year-over-year to $37 million. The company reported a $128 million loss from continuing operations, or 21 cents per share. Adjusted EBITDA, a non-GAAP measure of cash profitability, was negative $17 million. As of May 8, Keel reported liquidity of $533 million, comprising $336 million in unrestricted cash and $197 million in unencumbered bitcoin.
CEO Ben Gagnon described the rebranding as the culmination of a nearly two-year overhaul, marking the start of a new phase with 'strong momentum.' CFO Jonathan Mir added that the balance sheet supports development 'at the speed our customers require.' H.C. Wainwright recently raised its price target on Keel to $5.50 from $3.70, maintaining a Buy rating, citing the potential for key land and environmental permits by mid-to-late summer and a possible first colocation deal in the third quarter of 2026.
The re-rating of Keel is also fueled by broader sector dynamics. Competitors such as IREN and Cipher Mining have captured investor attention after securing major AI and cloud deals. IREN signed a cloud contract linked to Microsoft, while Cipher has agreements tied to Amazon Web Services and Fluidstack. According to Business Insider, B. Riley Securities analyst Nick Giles noted that ex-crypto miners have been 'more successful than anyone' anticipated in attracting AI-related business. Clear Street's Brian Dobson emphasized that the key test in 2026 will be 'executing on those deals.'
Despite the rally, risks remain significant. Keel is not yet profitable, and its shares are highly volatile. The current valuation hinges on the timely execution of permits, construction timelines, financing terms, and customer agreements. H.C. Wainwright highlighted the stock's high beta and negative gross margins as key concerns. For now, Keel remains a speculative bet on future AI demand rather than a steady data center landlord. Investors will be watching closely for news of lease signings, permit approvals, or a clear roadmap to monetize its pipeline megawatts.
