Keel Infrastructure Corp. (NASDAQ: KEEL, TSX: KEEL) saw its shares climb sharply last week, reflecting growing investor enthusiasm for its strategic pivot away from bitcoin mining and toward AI-focused data center infrastructure. The company, formerly known as Bitfarms, is now positioning itself as a pure-play developer and owner of high-performance computing (HPC) facilities, but the market is waiting for proof that this transition can translate into long-term lease agreements.
On the Nasdaq, Keel shares closed at $6.29 on June 18, up 32 cents or 5.36%, pushing the market capitalization to approximately $3.79 billion. The stock gained 13.95% for the week and has surged 50.48% over the past month, according to FXEmpire. On the Toronto Stock Exchange, shares ended at C$9.93 on June 19, a jump of 12.33%, after trading between C$8.70 and C$10.81 during the session.
The rally follows the closing of a $458 million issuance of 1.250% convertible senior notes due 2032 on June 9. These bonds can be converted into stock at an initial conversion price of approximately $7.41 per share, representing a 25% premium over the Nasdaq sale price on June 4. Part of the proceeds were used to fund capped call transactions, designed to limit dilution if the stock price rises above a predetermined level.
Management has indicated that current liquidity is sufficient to cover development costs for its Panther Creek, Sharon, and Moses Lake projects through the leasing phase. Remaining funds from the note offering may be allocated to equipment deposits or letters of credit, providing a financial cushion before any major tenant deal is announced. This cash-on-hand position is central to the bullish narrative: the company has funding in place ahead of revenue, not after.
Keel describes itself as a New York-based owner and developer of data centers and energy projects for HPC, which powers AI and other computationally intensive workloads. Its pipeline totals 2.2 gigawatts. CEO Ben Gagnon characterized the rebrand as a complete departure from Bitfarms' legacy, stating that Keel is now a pure-play infrastructure developer and owner focused on enabling customers to deploy AI compute at the required pace and scale. CFO Jonathan Mir added that the company's liquidity allows it to continue developing at the speed customers demand.
Despite the positive sentiment, the company faces significant challenges. First-quarter revenue fell to $37 million from $47.7 million year-over-year, while losses from continuing operations widened to $127.6 million. Adjusted EBITDA was negative $16.7 million, and filings show that the HPC unit had not generated any revenue by the end of 2025. The path to profitability depends on converting power access and site development into long-term data center lease contracts, which have yet to materialize.
Analyst Bill Papanastasiou of Chardan initiated coverage on Keel, along with Galaxy Digital and Riot Platforms, with Buy ratings in late April, linking them to the broader shift from bitcoin mining to HPC and data center leasing. However, Keel still needs to demonstrate that it belongs among infrastructure names rather than the more volatile crypto-mining cohort.
Key risks include potential delays in lease agreements, rising construction costs, and the dilutive impact of future debt conversions. Investors will be watching closely this week, as management is scheduled to participate in several investor events: a fireside chat with Alliance Global Partners on June 22 at 10 a.m. EDT, the Northland Growth Conference on June 23, and the Citizens Digital Infrastructure Forum on June 25. These appearances may provide updates on tenant negotiations, build schedules, or capital allocation plans.
The coming weeks will be critical for Keel as it seeks to validate its AI data center pivot with concrete lease announcements. Until then, the market's enthusiasm remains tempered by the need for tangible proof of execution.
