Keel Shuts Down All US Bitcoin Mining Operations
Keel, a US-based infrastructure firm, has officially ceased all bitcoin mining activities across its American sites. The company is repurposing its power-abundant facilities into centers for artificial intelligence (AI) and high-performance computing. CEO Ben Gagnon cited the critical limitation posed by electricity availability as the primary factor driving this strategic pivot. The transition, ongoing for about 18 months, now sees three major projects nearing regulatory approval.
Q2 Revenue Drops 50% Amid Bitcoin Price Slump; Sells 1,085 BTC to Boost Liquidity
In its Q2 2026 earnings report, Keel disclosed a 50% year-over-year revenue reduction to $30.4 million and a net loss of $65 million. Adjusted EBITDA showed a $24 million deficit. The revenue drop was partially due to weaker bitcoin prices and the shutdown of the Moses Lake mining facility in April. Between April and August, the company liquidated 1,085 bitcoins, generating approximately $75 million in cash proceeds and retaining a 1,861 BTC balance. These asset sales helped maintain about $819 million in liquidity, including $698 million in unrestricted cash and $121 million in unpledged bitcoin holdings. Keel also raised $458 million through convertible bond financing.
AI and HPC: Keel’s New Strategic Focus
Keel plans to concentrate operations on AI and high-performance computing markets. Its Sherbrooke, Quebec site is progressing under a conditional transfer and operations agreement with local authorities and will provide 96 megawatts of power capacity. This shift mirrors broader industry trends where miners prioritize grid access and power contracts over mining rigs themselves. For example, Bitdeer recently committed to a 16-year, $4.7 billion AI infrastructure deal supporting 121 megawatts in Norway’s Tydal park. MARA CEO Fred Thiel highlighted that scarce power allocated to AI projects offers substantially higher returns compared to traditional bitcoin mining, which remains viable only in regions with exceptionally low electricity costs.
Success Hinges on Attracting Long-Term AI Tenants
Keel has yet to announce long-term AI infrastructure leasing contracts. Securing such agreements will be pivotal in validating its transformation strategy. Having exited the US bitcoin mining sector with a robust cash position, the company now faces the challenge of demonstrating that diverting limited power resources into AI operations can generate steady and sustainable cash flows.