KEEL Stock Hits 14-Month Low: Q3 Report Reveals Firm Sold All Its Bitcoin But Has No Data Center Leases Yet

Keel sold 2,520 Bitcoin in the third quarter for $192 million, while it continued to negotiate leases for its AI data center sites.

• Keel shares saw double digit loss in midday trade on Thursday.
• The company's revenue dropped 59% from a year earlier to $27.6 million after Keel stopped mining Bitcoin in the U.S.
• CEO Ben Gagnon said multiple "creditworthy parties" were negotiating leases at the company's three near-term sites.

Shares of Keel Infrastructure Corp. (KEEL) plummeted in midday trade on Thursday, on track to hit a 14-month low, after the company reported a steep drop in third-quarter revenue after selling all Bitcoin (BTC) on its balance sheet and no signed data center leases to show investors.

Keel sold 2,520 Bitcoin during the third quarter for $192 million in proceeds, the company said in its earnings report. That included its entire treasury position of 2,261 Bitcoin and the 259 Bitcoin it mined during the quarter. Keel said its "Bitcoin holdings were nominal" as of late September 30.

The company said it would sell the Bitcoin it will mine in Quebec, Canada, every day going forward. That would effectively remove its exposure to Bitcoin price swings on treasury holdings, according to the company.

KEEL’s price was down over 20% during midday trade. On Stocktwits, the retail sentiment around KEEL was moved to ‘extremely bullish,’ from ‘bullish’ zone, while chatter around it stayed at ‘high’ levels over the past day.

The price is the lowest the stock's been since early February. It's already down approximately three-quarters of its value from a peak around $7 in late June. Shares were above $4 in late September when the fall began.

Revenue Drops After Mining Exit

The company's revenue fell 59% to $27.6 million from $68 million a year earlier. The company attributed the decline mainly to its decision to halt U.S. Bitcoin mining in the second quarter to focus on high-performance computing (HPC) and AI development. A lower average Bitcoin price also weighed on revenue.

Still, revenue came in about 29% above the $21.5 million analysts had expected, according to Koyfin data. That marked a break from the previous four quarters, when Keel missed revenue estimates each time.

Losses widened during the quarter, as Keel's loss from continuing operations grew to $62 million, or $0.10 per share, from $11 million, or $0.02 per share, a year earlier. It was slightly wider than the $ 0.09-per-share loss analysts had expected, according to Koyfin. The company said the increase was driven mainly by a $55 million non-cash loss on capped calls tied to its 2025 convertible notes.

Lease Talks Continue At Three Sites

Keel said it was in advanced lease negotiations at three near-term sites. According to CEO Ben Gagnon, competition for the sites was high, with multiple "creditworthy parties at the negotiating table."

"I have every confidence we will sign the right leases for each site, ones that deliver the most attractive returns for our shareholders," the CEO said.

Construction began at its Moses Lake site in September after Keel received all necessary permits. The company expects Moses Lake to be its first energized site generating HPC revenue in 2027.

Keel said it had about $780 million in unrestricted cash as of Wednesday. Chief Financial Officer (CFO) Jonathan Mir said the company had no current need for debt or equity financing before signing a lease.

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