Keel Infrastructure Corp. saw its stock climb 7.1% to $4.53 by 1:44 p.m. EDT Thursday, approaching its 52-week peak of $4.66. The rally reflects growing investor confidence in the company's strategic pivot from cryptocurrency mining to high-performance computing (HPC) and artificial intelligence data centers.
Other companies in the digital infrastructure space, such as IREN and Cipher Digital, also experienced gains, contrasting with a broader market decline driven by rising oil prices and Treasury yields. Trading volume for Keel reached 22.31 million shares, below its 33.41 million average, while the company's market capitalization stood at approximately $2.71 billion.
The stock's recent momentum is not merely a continuation of the crypto-mining trade. Investors are now evaluating whether Keel can successfully repurpose its power-intensive mining facilities into HPC clusters, which are essential for AI and other compute-heavy workloads. This transformation is central to the bullish narrative surrounding the company.
Alliance Global analyst Brian Kinstlinger recently raised his price target on Keel to $8 from $5, maintaining a Buy rating. He highlighted three primary HPC/AI sites totaling 478 megawatts that are still navigating the permitting process. Kinstlinger noted that demand for HPC/AI power is not the bottleneck; rather, securing permits and leases is the critical challenge.
Keel has taken steps to support this thesis. Earlier this month, the company announced it had secured zoning approvals and was advancing development at its Panther Creek, Sharon, and Moses Lake sites. As of May 8, Keel reported liquidity of $533 million. CEO Ben Gagnon described the rebranding as 'the completion of a nearly two-year strategic transformation,' while CFO Jonathan Mir emphasized the company's strong cash position.
The new ticker symbol 'KEEL' began trading on Nasdaq and the Toronto Stock Exchange on April 6, following an SEC filing that designated Keel as the successor issuer to Bitfarms Canada. Bitfarms shares were subsequently delisted.
Despite the optimistic narrative, the company's financial performance tells a more cautious story. Keel's March-quarter 10-Q filing revealed revenue of $36.99 million, down from $47.65 million in the same period last year. The net loss widened to $145.35 million from $55.55 million. The filing also warned that the shift from bitcoin mining to digital infrastructure may not succeed, citing risks related to power dependence, cost overruns, competition, financing needs, and bitcoin volatility.
The stock remains vulnerable to delays in permits or lease agreements. A signed tenant would provide tangible evidence of the AI data-center pivot, while any slip could leave investors grappling with ongoing losses, capital expenditures, and a legacy bitcoin-linked business. The competitive landscape is also intensifying, as miners, data-center landlords, and energy-backed developers all vie for the same AI load growth.
The trading session occurred during a regular U.S. equity session. With Memorial Day on May 25, the market faces a shortened week ahead. For now, Keel's stock reflects a story that has evolved faster than its financial results. The next test will be whether leases and construction can catch up with market expectations.
