Keel Infrastructure (NASDAQ: KEEL) saw its stock rally sharply on the Toronto Stock Exchange Friday, as U.S. markets remained closed for the Juneteenth holiday. The company, formerly known as Bitfarms, is pivoting aggressively toward artificial intelligence data-center operations, a strategic shift that has captured investor attention.
In Toronto, Keel shares traded at CA$10.36 by midday Friday, representing a 17.19% gain. In the U.S., the stock closed Thursday at $6.29, up 5.36% ahead of the holiday break. The momentum follows the company's announcement of a $458 million convertible-note offering, proceeds of which are earmarked for data-center projects supporting high-performance computing (HPC) workloads.
Convertible Note Details
On June 9, Keel completed a $458 million offering of 1.25% convertible senior notes due in 2032. The notes are convertible into shares or cash under specified terms, with an initial conversion price of approximately $7.41 per share. Part of the proceeds funded capped-call transactions, designed to mitigate dilution if the stock appreciates.
The company stated the remaining funds will support general corporate purposes, including long-lead equipment deposits and letters of credit for its data-center buildouts. This financing, combined with existing liquidity, is expected to provide flexibility as Keel negotiates leases at three key sites: Panther Creek, Sharon, and Moses Lake.
Market Context and Risks
Keel's transformation from a crypto mining firm to an AI infrastructure player comes amid a broader industry trend. Competitors like IREN have secured strategic partnerships with Nvidia, while TeraWulf controls 2.3 gigawatts of power capacity. In this environment, access to low-cost power and large-scale data-center capacity is a critical asset.
However, risks remain significant. The company reported first-quarter revenue of $37 million, down 23% year-over-year, with a continuing operations loss of $128 million ($0.21 per share). Adjusted EBITDA was negative $17 million. Management has flagged potential operating losses, construction delays, cost overruns, financing gaps, and dilution from future securities sales as key concerns.
Lease Execution as Catalyst
Investors are closely watching lease execution at Panther Creek, Sharon, and Moses Lake. CEO Ben Gagnon expressed confidence in achieving lease agreements in 2026, while CFO Jonathan Mir emphasized capital allocation to areas with the strongest returns. The company's ability to convert its power-secured sites into signed contracts will be pivotal in validating its AI pivot.
Keel's recent stock performance reflects growing optimism. Nasdaq shares have surged 19.13% over the past week and 55.12% in the last month, with trading volume exceeding 87 million shares on Thursday—well above the average daily volume of roughly 50 million shares.
As U.S. trading resumes Monday, market participants will weigh Toronto's strong performance against the backdrop of ongoing operational challenges. The key question remains whether the rally is justified by real business progress or simply speculative enthusiasm.
