Keel Infrastructure's Toronto-listed shares climbed 6.94% to CA$7.09 on Monday, while its Nasdaq-listed stock remained closed for the Memorial Day holiday after closing Friday at $4.81, up 3.66% on the day. The dual-listed company, formerly known as Bitfarms, is undergoing a strategic transformation from a bitcoin mining operation to a provider of power-backed data centers for artificial intelligence workloads.
The market's attention this week is squarely on Keel's ability to execute leases for high-performance computing (HPC) and AI infrastructure. The company has outlined a 2.2 gigawatt pipeline of data center and energy projects, with key sites at Panther Creek, Sharon, and Moses Lake. CEO Ben Gagnon stated in the company's May 11 earnings release that zoning has been secured and site development is on track at these locations, though land development and environmental permits are still in progress.
Keel's first-quarter financial results painted a mixed picture. Revenue came in at $37 million, down 23% from the same period last year, while the company reported a loss from continuing operations of $128 million, or 21 cents per share. Adjusted EBITDA, a measure of operating profitability, was negative $17 million. Despite these figures, the company maintains a strong liquidity position of $533 million as of May 8, including $336 million in unrestricted cash and $197 million in unencumbered bitcoin.
Chief Financial Officer Jonathan Mir emphasized that the current liquidity is sufficient to fund the three near-term sites through lease signing, commence construction at Moses Lake, and cover general and administrative expenses through 2028. The company continues to reduce its bitcoin holdings, selling 269 bitcoin for $20 million in the first four months of the year as part of a previously announced wind-down.
Analyst sentiment remains supportive. Chardan recently raised its price target on Keel to $5.50 from $4.50, maintaining a buy rating. The average analyst price target stands at $5.40, according to data from MarketScreener. The stock has gained approximately 9.6% over the past five trading sessions.
The broader market context provides a favorable backdrop for Keel's pivot. Applied Digital recently signed a $7.5 billion, 15-year lease for 300 megawatts of AI data center capacity, while IREN has secured over 4.5 GW of power for its AI cloud and colocation services. Keel's challenge is to demonstrate that its pipeline can attract similar tenant demand.
However, risks remain. In its quarterly filing, Keel warned that its strategic shift from bitcoin mining to digital infrastructure may not succeed, that AI-focused data centers may not become profitable, and that projects face potential delays, cost overruns, competition, regulatory hurdles, and financing needs. These uncertainties cut directly to the core of the stock's recent rally.
With Nasdaq reopening on Tuesday, traders will be closely monitoring for any announcements regarding lease agreements. The coming days will serve as a critical test of whether Keel can convert its zoning approvals, permits, and power capacity into signed AI infrastructure leases, validating its transformation narrative.
