The Shift from Mining to AI: Understanding Keel's Corporate Transformation

By Patricia Miller

2 min read

Keel Infrastructure, once Bitfarms, has shifted from Bitcoin mining to AI, reshaping its financial future amid significant challenges.

What has happened to Bitfarms after rebranding and divesting? Formerly known as Bitfarms, the company has shifted to a different identity as Keel Infrastructure Corp. This transition began on April 1, 2026, when it completed a US redomiciliation and decided to exit the Bitcoin mining sector entirely. By the end of June 2026, Keel had exited all of its US mining activities and sold off its Argentine and Paraguayan assets, dismantling the significant mining footprint Bitfarms had developed in Latin America.

What is Keel's new focus area? Keel is now focusing on developing high-performance computing and AI-centered data center infrastructure. As of April 1, 2026, the firm retained 2,469 Bitcoin worth approximately $168.5 million, indicating they still maintain a presence in the cryptocurrency market.

How does Keel’s financial status look? Although Keel holds substantial cash reserves amounting to $715.5 million, the company reported a steep revenue drop in Q2 of 2026, generating $30.4 million, with total revenue for the first half of the year reaching $67.4 million. This downturn reflects significant losses, totaling $65.0 million in that quarter and $210.3 million for the first half of the year attributed primarily to non-cash charges from decommissioning mining equipment.

Why should investors care about the cost basis? The company’s cost basis for its remaining Bitcoin holdings has surged to $205,946, nearly doubling from a year earlier. This increase impacts profitability because a higher average purchase price means Bitcoin prices need to stay significantly above this level for Keel to realize reasonable gains from its existing assets. Selling lower-cost Bitcoins first raises the average entry price of what remains, complicating future profit extraction.

How does the trend impact the industry? Keel Infrastructure is part of a growing trend as other miners pivot towards AI infrastructure. Many companies are recognizing that the existing power and cooling systems designed for Bitcoin mining can be successfully adapted for AI applications. Firms like Core Scientific and Iris Energy are also exploring similar transformations, indicating a broader movement within the industry. Keel's substantial first-half losses emphasize the financial challenges that accompany this transition, though the potential benefits of entering the AI sector may prove valuable in the long run.

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Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.