10-Q · May 11, 2026
Keel Infrastructure Corp. reported a significant decline in both revenue and net loss in Q1 2026 compared to the prior year, driven by a decrease in Bitcoin mined and increased costs. Revenue decreased by 22%…
Earnings analysis · 10-Q
KEEL earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
Keel's Q2 2026 operating performance deteriorated sharply: revenue fell 50% year over year to $30.430 million, gross margin was negative 285.1%, operating loss reached $140.774 million, and diluted loss per share was…
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Keel's Q2 2026 operating performance deteriorated sharply: revenue fell 50% year over year to $30.430 million, gross margin was negative 285.1%, operating loss reached $140.774 million, and diluted loss per share was $0.11. Liquidity improved through cash balances and $444.474 million of convertible-note proceeds, but operating cash flow remained negative $117.615 million and debt rose to $1.025829 billion. The strategic shift from Bitcoin Mining to HPC is progressing through an announced 2.2 GW pipeline, but no HPC revenue had begun as of August 7, 2026, leaving substantial execution, contracting, capital-intensity, and financing risks.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.11
- Gross margin
- -285.1%
- Operating margin
- -462.4%
What stood out
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Revenue fell 50% year over year
Q2 2026 revenue was $30.430 million, down $30.478 million, or 50%, from $60.908 million in Q2 2025 and down from $36.992 million in Q1 2026. Management attributed the year-over-year decline primarily to lower average Bitcoin prices, higher network difficulty, and the Washington mining shutdown.
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Margins deteriorated sharply
Gross loss widened to $86.753 million from $3.886 million in Q2 2025, producing a gross margin of negative 285.1% versus negative 6.4%. Operating loss was $140.774 million versus operating income of $10.809 million, with accelerated depreciation contributing $62.993 million in Q2.
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EPS remained deeply negative
Diluted loss per share was $0.11 versus diluted EPS of $0.02 in Q2 2025 and diluted loss per share of $0.21 in Q1 2026. Net loss was $64.995 million compared with $5.501 million in the prior-year quarter.
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Liquidity improved materially
Cash increased to $715.516 million from $573.462 million at December 31, 2025, while working capital rose to $841.344 million from $678.353 million. Total cash and restricted cash was $768.893 million at June 30, 2026.
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HPC transition advanced
Management ceased U.S. Bitcoin Mining operations on June 29, 2026 and is developing an 18 gross MW Washington HPC data center. The company reported a 2.2 GW power-capacity pipeline and $146.857 million of HPC project commitments as of June 30, 2026.
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Convertible financing funded growth
The company raised $444.474 million of net proceeds from $458.000 million of 2026 Convertible Notes. Long-term debt increased to $1.025829 billion from $669.469 million at December 31, 2025, providing funding for development but increasing leverage.
What to watch
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Cash burn and capital intensity
Operating cash flow was negative $117.615 million for the six months ended June 30, 2026, versus negative $93.722 million in the prior-year period. Purchases of property, plant and equipment and intangible assets were $53.413 million, while equipment and construction prepayments were $51.721 million.
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Leverage increased materially
The company had $1.025829 billion of carrying-value long-term debt at June 30, 2026, including $458.334 million of 2026 Convertible Notes and $593.607 million of 2025 Convertible Notes. Future principal payments and minimum lease payments totaled $1.078643 billion.
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Bitcoin price and production risk
Legacy Bitcoin Mining remains exposed to market conditions: Q2 Bitcoin earned fell to 354 from 556, average Bitcoin price declined to $72,020 from $97,942, and the company held 2,261 Bitcoin valued at $132.384 million at quarter-end. Management stated that a 10% Bitcoin price change would have affected Q2 revenue by $2.6 million.
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HPC execution and contracting risk
The HPC strategy has not yet generated reported HPC revenue: as of August 7, 2026, no HPC operations had commenced at the 18 gross MW Washington site or the Pennsylvania sites. Panther Creek and Scrubgrass had approximately 60 gross MW and 63 gross MW, respectively, not contracted under an electric supply agreement.
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Asset utilization and impairment risk
The transition caused accelerated depreciation and asset write-downs: Q2 2026 included $62.993 million of additional depreciation and $1.583 million of impairment from continuing operations. Property, plant and equipment declined to $287.055 million from $358.333 million at December 31, 2025.
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Formal risk factors unchanged
The filing states that there were no material changes from the risk factors in the Annual Report. However, the report highlights new quantitative exposure from letters of credit and project support, including $53.377 million of restricted cash and estimated additional Panther Creek credit support of $82.900 million before construction.
Management's outlook
No quantitative revenue or EPS guidance was provided. Management stated that existing cash and Bitcoin, together with cash generated from operations and future investing and financing activities, are expected to be sufficient for anticipated cash requirements for the next 12 months and beyond, but also said additional funds may be required for the 2026 and 2027 growth plans.
Earlier filings 2
10-K · March 31, 2026
Keel (formerly Bitfarms) is repositioning from legacy Bitcoin Mining to HPC Infrastructure, leveraging a 2.2 GW infrastructure pipeline (648 MW secured, 1,513 MW planned) and 100% renewable hydroelectric capacity in…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.