Keel Exits Bitcoin Mining for HPC, Revenue Down 50%
Keel decommissioned all US Bitcoin mining operations, shifting to HPC, and reported a 50% revenue drop to $30M. The company sold 1,085 BTC for $75M, with a $141M operating loss.
Quick Take
Keel shut down all US Bitcoin mining, pivoting to high-performance computing.
Q2 revenue fell 50% to $30M, with a $141M operating loss.
Company sold 1,085 BTC for $75M, holding 1,861 BTC.
Stock price dropped 12% on Monday following the announcement.
Market Impact Analysis
NeutralOne mining company's exit and BTC sales are unlikely to move Bitcoin market significantly.
Speculation Analysis
Key Takeaways
- Keel fully exited US Bitcoin mining, pivoting to high-performance computing.
- Q2 revenue dropped 50% YoY to $30M, driven by lower BTC prices and the Moses Lake shutdown.
- A $141M operating loss was reported, with $84M from non-cash depreciation.
- The company sold 1,085 BTC for $75M, retaining 1,861 BTC.
- Stock price fell 12% following the announcement.
What Happened
Keel Infrastructure decommissioned all US Bitcoin mining operations in a definitive pivot to high-performance computing (HPC). The digital infrastructure company revealed in its Q2 report that revenue plunged 50% year-on-year to $30M. The operating loss ballooned to $141M, compared to $11M income a year earlier. As part of its strategy, Keel sold 1,085 BTC for $75M while retaining 1,861 BTC. The stock price shed 12% on Monday, reflecting market skepticism.
The Numbers
The $30M revenue figure marked a sharp decline from $60M in the prior year quarter. The $141M operating loss included $84M in non-cash depreciation charges. The company’s liquidity stood at $819M, with $698M in unrestricted cash. Keel mined its last BTC at the Moses Lake facility before shutting it down in April 2026. The sell-down of 1,085 BTC generated $75M, bringing its treasury to 1,861 BTC.
Why It Happened
Lower Bitcoin prices eroded mining profitability, while the Moses Lake closure removed a key revenue stream. Rather than fight margin compression, Keel opted to redeploy capital toward HPC infrastructure—a higher-margin business with growing demand from AI and cloud computing. The non-cash depreciation amplified the headline loss, but the underlying cash position remains robust. The sale of BTC provides runway to fund the transition.
What to Watch Next
- Whether Keel secures anchor tenants for its HPC facilities and the pace of construction.
- If other US miners follow suit with full exits rather than hybrid mining/HPC models.
- Bitcoin network hash rate adjustments as Keel’s ASICs potentially resurface elsewhere.
This article is for informational purposes only and does not constitute financial advice.
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