Keel sells all bitcoin treasury for $192 million and will sell new coins daily

Keel sells 2,520 bitcoin for $192 million in third quarter

Keel Infrastructure sold its entire bitcoin treasury in the third quarter. The former bitcoin miner, formerly known as Bitfarms, sold 2,520 bitcoin for $192 million.

The company said the sale covered 2,261 bitcoin it held at the start of the quarter and 259 bitcoin it mined during the quarter. It reported only nominal bitcoin holdings at Sept. 30.

Going forward, Keel said bitcoin mined at its remaining Quebec operations will be sold each day. A bitcoin treasury means bitcoin a company keeps on its balance sheet as an asset. Keel said daily sales will effectively remove its exposure to bitcoin price changes on treasury holdings.

Key numbers from the report

• 2,520 bitcoin sold for $192 million in the third quarter
• Revenue from continuing operations fell to $28 million from $68 million a year earlier
• Adjusted EBITDA was negative $27 million, compared with positive $19 million a year earlier
• General and administrative expenses rose to about $34 million
• About $780 million in unrestricted cash as of Nov. 4
• Development pipeline of about 2.2 gigawatts across Pennsylvania, Washington State and Quebec

Shift from bitcoin mining to AI infrastructure

Keel rebranded from Bitfarms after a U.S. redomiciliation to Delaware in April. It now describes itself as a North American digital infrastructure and energy company.

The company stopped U.S. bitcoin mining in the second quarter. That stop, along with a lower average bitcoin price, was cited as the main reason revenue from continuing operations fell.

Keel said general and administrative expenses roughly doubled because it hired senior specialists and recorded higher stock-based compensation. It said it has no current need for debt or equity financing before signing a lease.

CEO Ben Gagnon said power supply is getting scarcer while demand keeps climbing. He said Keel's 2027 and 2028 power is further advanced, more secure, and closer to delivery than last quarter. CFO Jonathan Mir said capital deployed ahead of a lease becomes equity in project financing and that the company looks for chances to recycle capital on an ongoing basis.

What Keel is building instead

Keel said construction began at Moses Lake in September. It expects Moses Lake to be its first energized site generating HPC revenue in 2027. HPC means high-performance computing, or large-scale computing often used for artificial intelligence.

Keel also said it engineered an optional plan for next-generation Vera Rubin architecture at Moses Lake. Permitting advanced at Sharon and Panther Creek in Pennsylvania.

Load studies could expand secured data center capacity from 478 megawatts toward nearly 1.9 gigawatts if Panther Creek and Scrubgrass expansions proceed. Keel said it is also consolidating older bitcoin sites into a single AI campus.

The report also noted that Riot Platforms and Hut 8 have sold thousands of bitcoin this year to fund AI builds and share buybacks. It said Riot this week named Anthropic as the tenant on a roughly $28 billion Texas lease.

What is still unclear

Keel has not reported a signed lease for its near-term sites. The report said competitive tension is high at all three near-term sites and multiple creditworthy parties are at the table.

It remains unclear whether leases will close on the terms described by Gagnon before the cash from the bitcoin sale and remaining Quebec mining is spent.

Sources

• Bitcoin Magazine

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