Keel Infrastructure Sells All Its Bitcoin, No Longer Holds BTC

Nasdaq-listed miner Keel Infrastructure, previously known as Bitfarms, disposed of its total 2,261-Bitcoin (BTC) holdings in the last quarter. Going forward, any newly mined Bitcoin will be sold on the day it is produced.

Shareholders are left without a reserve of coins that could boost the share price. However, Keel's income continues to depend on the price of Bitcoin until leases are signed with AI data center tenants.

Is Keel Infrastructure Still Considered a Bitcoin Stock?

In the quarter ending September 30, Keel offloaded 2,520 BTC, according to its financial report. This included its entire reserve along with 259 freshly mined tokens, generating $192 million.

The disposals fetched roughly $76,200 per coin on average. Keel stated it sold “during periods of strength,” but its income statement shows a realized loss of $32 million on those sales.

By selling its Quebec production on a daily basis, the company claims it eliminates exposure to Bitcoin price fluctuations on its holdings.

The quarterly filing presents the counterargument. It cautions that Bitcoin's volatility will continue to impact earnings at its remaining mining operations, which are currently among its limited revenue streams.

Based on Keel's own data, the answer is partly yes. It no longer holds Bitcoin, yet it still generates revenue from mining until AI tenants begin paying rent.

The stock dropped 9.5% to $1.90 as of 9:40 a.m. ET on Thursday, and has declined nearly 18% over the past five days, according to Nasdaq data.

Why Bitcoin Miners Are Selling Their Holdings

Competitor Riot Platforms offloaded 79% of its Bitcoin in the previous quarter to finance AI data centers in Texas. In August, BeInCrypto reported that miners were turning into net sellers of the coins they produced.

Keel's daily sales volume is modest, approximately three coins per day based on third-quarter production. The more significant change is the allocation of funds.

Keel is converting its power facilities into high-performance computing (HPC) data centers, which are the chip-intensive infrastructure driving AI. Construction started in Moses Lake, Washington, in September, and the company anticipates initial HPC revenue in 2027.

“We remain strongly capitalized, with approximately $780 million of cash liquidity and no current need for debt or equity financing before signing a lease,” Jonathan Mir, CFO, Keel Infrastructure said.

Additionally, the quarterly filing reports $1.02 billion in long-term debt as of September 30. Revenue declined 59% to $28 million during the same period.

CEO Ben Gagnon stated that multiple creditworthy bidders are in negotiations for three near-term sites. No lease agreements have been finalized. Keel cites a Pennsylvania executive order concerning data centers as a risk, as well as local resistance to data center projects.