Keel Infrastructure, the rebranded entity formerly known as Bitfarms, disclosed a massive $145 million net loss in its first-quarter 2026 earnings report on July 10, as the company completely exited Bitcoin mining to pivot toward artificial intelligence infrastructure. Revenue declined 23% year-over-year to $37 million, largely due to the withdrawal from Latin American operations.
Strategic Pivot Details
The company completed its rebranding on April 1, moving its corporate registration from Canada to the United States. CEO Ben Gagnon emphasized the new focus on high-performance computing and AI data centers across North America. Despite the heavy quarterly loss, Keel maintains $533 million in liquid funds to fuel future expansion.
Breakdown of Losses
The loss was primarily driven by restructuring costs, including a $41 million loss from digital asset valuation changes and a $22 million loss from terminating a credit arrangement. The exit from Latin American markets further pressured top-line results. Gagnon described these as necessary one-time expenses to complete the transformation.
Outlook and Next Steps
Keel is now leasing three data center locations in North America, with completion expected later this year. The company aims to secure AI data center clients as competition intensifies in the growing AI infrastructure market. While the pivot mirrors a broader trend of Bitcoin miners entering AI (as highlighted by Bernstein), near-term challenges include market competition and upfront investment costs.