Keel Sells 2,520 Bitcoin for $192.2 Million in Third Quarter
Key Facts
Keel Infrastructure sold a total of 2,520 bitcoin during the third quarter of 2026, generating $192.2 million, according to the company’s investor filing. The amount included its entire treasury balance of 2,261 bitcoin as of June 30, plus 259 bitcoin mined during the quarter. The company thus sold the coins it held and all of its mined production during the period. The sale comes as Keel redirects its business toward data center infrastructure and high-performance computing. The company ended the quarter with a loss from continuing operations, while reporting substantial unrestricted cash and expansion projects under development in its results.
Third-quarter results showed revenue from continuing operations falling to $28 million, compared with $68 million in the same period of 2025. The company attributed much of the decline to its decision to halt bitcoin mining operations in the United States during the second quarter of 2026. It also cited a lower average bitcoin price among the factors weighing on revenue. This puts the proceeds from the sale in the context of an operational shift, as the company gave up its bitcoin holdings while halting its U.S. mining activity. The year-over-year comparison shows revenue shrinking alongside the company’s move to develop sites targeting high-performance computing revenue.
The loss from continuing operations was $62 million, or $0.10 per share on a basic and diluted basis, compared with a loss of $11 million, or $0.02 per share, in the third quarter of 2025. The company said the main driver of the loss was an unrealized $55 million loss on the fair value of warrants associated with a 2025 convertible note issuance. It said the loss was non-cash, distinguishing its accounting impact from the cash proceeds generated by the bitcoin sale. These items put the quarter’s results under greater pressure than the revenue decline alone. The company said it had about $780 million in unrestricted cash as of November 4.
Data disclosed during the second quarter reflects a broader reduction in Keel’s bitcoin position. The company said it sold 1,085 bitcoin for $75 million from April 1 to August 7, and reported that its balance stood at 1,861 bitcoin on August 7. On the same date, total liquidity was about $819 million, including $698 million in unrestricted cash and $121 million in unencumbered bitcoin. These figures differ from the cash balance reported on November 4, which was about $780 million and included only unrestricted cash in the company’s statement. The third-quarter sale covered the treasury balance at the end of June and that quarter’s production.
On data centers, Keel said it began construction at its Moses Lake site in September, after completing the required permitting. The company expects the site to be its first facility to begin generating high-performance computing revenue in 2027. It is also assessing potential capacity expansions at its Panther Creek and Scrubgrass sites, with potential capacity of up to 500 megawatts and 1.3 gigawatts, respectively. The company estimated that the expansion could increase its secured data center capacity from 478 megawatts to 1,928 megawatts. It aims to complete the two expansion studies in the first quarter of 2027, making their findings a forthcoming milestone in assessing the scale of its plans.
The company said it removed three permits from the approval process in Sharon and Panther Creek, while four environmental permits remain pending, two of them in draft form. In comments on the third-quarter results, Chief Executive Ben Gagnon said the company’s targeted power for 2027 and 2028 “is more advanced, more secure and closer to delivery than it was last quarter.” He added that “competition is strong at the three nearby sites,” referring to ongoing negotiations over them. The third-quarter earnings call was held on November 5 at 8:00 a.m. Eastern time. The investor events page did not specify a forthcoming date, saying other events would be announced later.