Keel Terminates US Bitcoin Mining: Revenue Halves as AI Pivot Accelerates

Keel Infrastructure has fully decommissioned its US Bitcoin mining operations, executing a decisive pivot toward artificial intelligence and high-performance computing (HPC) infrastructure, marking the latest significant shift in the digital asset landscape.

Strategic Exodus: From Crypto Mining to AI Infrastructure

According to its second-quarter report released on Monday, the digital infrastructure provider has shut down all US-based crypto mining activities to clear the way for the construction of HPC sites. Keel now stands as one of the few entities to completely exit US Bitcoin mining in favor of the AI boom, joining a broader trend where peers like Bit Digital and Crusoe have also halted mining to pivot to AI infrastructure. The move underscores a growing divergence in how digital infrastructure firms are allocating capital amid changing market dynamics.

Financial Shock: Revenue Collapse and Operating Losses

The cessation of mining operations and broader market conditions have heavily impacted the company's bottom line. Keel reported $30 million in revenue for the quarter, a steep 50% decline year-on-year. The company attributed this drop primarily to lower average Bitcoin (BTC) prices and the closure of its Moses Lake crypto mining facility in April 2026. Key financial highlights from the report include:

■The company swung to an operating loss of $141 million, a drastic reversal from the $11 million operating income recorded in the same period last year.

■Notably, the total loss included $84 million in non-cash depreciation charges, indicating that the cash flow impact may differ significantly from the reported net loss.

Liquidity Buffer and Treasury Liquidation

Despite the top-line contraction, Keel maintains a formidable war chest, providing it with the flexibility to fund its HPC ambitions. As part of its ongoing wind-down of crypto assets, the company sold 1,085 BTC for $75 million since April 1. As of Friday, Keel retained holdings of 1,861 BTC. The company’s balance sheet shows total liquidity of approximately $819 million, comprising $698 million in unrestricted cash. Nevertheless, investor sentiment soured following the announcement, with Keel’s stock price falling 12% on Monday, as reported by Yahoo Finance.

This strategic pivot highlights the structural margin pressures and energy cost challenges inherent in the crypto mining sector. Keel's exodus from mining to HPC serves not only as an operational shift but potentially as a hedge against regulatory risks and crypto market volatility. While the $141 million operating loss appears stark, the fact that $84 million consists of non-cash depreciation suggests that the company's underlying cash flow position remains robust. For investors, the critical metric moving forward will be how efficiently Keel can deploy its $698 million in unrestricted cash into AI infrastructure and how quickly the new high-performance computing segment can reach profitability.