Keel Infrastructure Corp. (NASDAQ: KEEL) saw its shares decline 1.82% in premarket trading on Thursday, pulling back from a strong rally the previous day. The stock had surged 7.31% on Wednesday to close at $5.505, but early indications showed it trading at $5.405 as of 9:01 a.m. Eastern Time.
The company, formerly known as Bitfarms, is undergoing a significant transformation, shifting its focus from Bitcoin mining to building artificial intelligence data centers powered by its own electricity infrastructure. This repositioning has captured market attention as a test case for whether power site owners can successfully repurpose their assets for high-performance computing (HPC) workloads, including AI training and inference.
Keel completed its U.S. redomiciling and rebranding in April, with shares debuting on both the Nasdaq and Toronto Stock Exchange on April 6. CEO Ben Gagnon described the move as a strategic pivot away from Bitcoin and toward “energy-secured sites” to support AI compute operations.
Despite the strategic shift, Keel's financial performance remains mixed. First-quarter revenue fell 23% year-over-year to $37 million, while the company reported an operating loss of $98 million and a loss from continuing operations of $128 million, or 21 cents per share. Adjusted EBITDA came in at negative $17 million.
However, Keel maintains a strong liquidity position. As of May 8, the company reported $533 million in liquidity, comprising $336 million in unrestricted cash and $197 million in unencumbered Bitcoin. CFO Jonathan Mir stated that this cash “fully funds the capital required” for near-term site development, including leases, construction at Moses Lake, and general and administrative costs through 2028.
The broader market has shown interest in the AI-infrastructure theme. Shares of other companies in the space also rallied on Wednesday, with Applied Digital gaining 8.51%, TeraWulf adding 6.20%, and Hut 8 advancing 4.53%. Keel's move was part of this sector-wide push, rather than a company-specific catalyst.
Wall Street analysts remain cautiously optimistic. Chardan raised its price target on Keel to $5.50 from $4.50 on May 12, maintaining a buy rating. According to FactSet, the average analyst rating is a buy, with a mean price target of $5.51.
However, risks remain. The company still needs to convert zoning approvals, grid access, and site plans into final leases and revenue. Its legacy mining business continues to lose money and remains tied to Bitcoin price volatility. Any delays in lease execution, rising construction costs, or regulatory changes in the power market could quickly undermine the AI-infrastructure bet.
Traders are now watching to see if Wednesday's rally holds through the full trading session or if premarket weakness triggers selling pressure ahead of more concrete lease execution updates from Keel.
