Keel Infrastructure Dumps Entire Bitcoin Treasury for $192M as Mining Exit Accelerates

Keel Infrastructure, formerly known as Bitfarms, disclosed Thursday that it sold 2,520 BTC during the quarter ended Sept. 30, including its entire treasury position of 2,261 BTC and another 259 BTC produced through its remaining mining operations.

The company said it timed the sales to take advantage of periods of market strength, leaving it with nominal bitcoin holdings at the end of September. Going forward, Keel plans to sell bitcoin generated by its remaining mining operations in Quebec on a daily basis, effectively eliminating its exposure to price fluctuations on treasury holdings.

The decision marks another significant break from Keel’s bitcoin mining roots as the company seeks to become a major provider of infrastructure for AI and high-performance computing (HPC). Keel reported approximately $780 million in unrestricted cash liquidity as of Nov. 4, providing substantial capital for its data center development plans.

The company previously completed the shutdown of its U.S. bitcoin mining operations during the second quarter, redirecting those facilities toward AI infrastructure development. It continues operating mining equipment in Canada during the transition.

Bitcoin.com News previously reported that Keel sold 1,085 BTC between April 1 and Aug. 7, leaving 1,861 BTC on its balance sheet at that point. The company had reported approximately $819 million in total liquidity, including cash and bitcoin, during that earlier period.

Keel’s latest earnings demonstrate the financial consequences of abandoning mining before replacement revenue from AI operations begins flowing. Third-quarter revenue fell to $28 million from $68 million a year earlier, primarily reflecting the shutdown of U.S. mining operations and lower average bitcoin prices.

The company reported a $62 million loss from continuing operations, compared with an $11 million loss a year earlier. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were negative $27 million, versus positive $19 million in the third quarter of 2025.

General and administrative expenses doubled to $34 million as Keel expanded its management team and incurred additional costs associated with developing large-scale infrastructure projects.

Nevertheless, the company reported progress toward commercializing its AI facilities.

Construction began in September at Moses Lake, Washington, which Keel expects to become its first operational HPC facility generating revenue in 2027. Permitting also advanced at its Sharon and Panther Creek sites in Pennsylvania, while negotiations with potential tenants continued across all three projects.

Keel is also studying potential expansions at Panther Creek and Scrubgrass that could increase its secured data center power capacity from 478 megawatts to as much as 1,928 megawatts.

CEO Ben Gagnon said increasing competition for electricity strengthens the company’s position in negotiations with prospective customers.

“Power supply is getting scarcer while demand keeps climbing,” Gagnon said, expressing confidence that Keel will secure leases offering attractive returns.

Keel’s stock price plunged 21% on Thursday amid a broader tech sell-off that impacted other miners and AI infrastructure firms, as well. Shares of KEEL were recently trading near $1.65, down more than 52% in the last month alone.

Tough October for Major Bitcoin Miners

The transition comes during a difficult period for publicly traded bitcoin miners pursuing AI infrastructure opportunities. In a Wednesday report, investment manager Vaneck argued that miners and other companies supplying powered data center facilities have been disproportionately punished by October’s technology stock sell-off.

According to Vaneck, these infrastructure providers declined approximately 35% on average during October amid concerns about rising interest rates, tighter credit conditions, and the financing required for AI construction. However, the firm noted that no signed leases had been canceled among the publicly traded companies it analyzed.

Vaneck argued that former bitcoin miners increasingly operate as infrastructure landlords, supplying electricity connections and facilities under long-term leases rather than directly competing with AI computing providers that purchase expensive processors.

That distinction could support higher valuations, particularly as electricity availability becomes an increasingly important constraint on AI expansion. Citing Morgan Stanley estimates, Vaneck warned that the United States faces a potential 38-gigawatt data center capacity shortfall through 2028.

The firm nevertheless acknowledged considerable financing risks, including approximately $23 billion in construction-related debt potentially requiring refinancing during 2027 and 2028.

For Keel, which has yet to announce major long-term AI leases, the immediate challenge is translating its electricity infrastructure and development pipeline into contracted revenue. Its substantial cash holdings provide flexibility, but its complete bitcoin treasury liquidation underscores how decisively the company has shifted away from the business that originally financed its expansion.