KEEL Spent $52M on HPC Expansion, Sold Bitcoin and Latin America Assets to Fund AI Pivot
KEEL has ramped up spending on North American AI and high-performance computing infrastructure while continuing to wind down parts of its Bitcoin mining business.
The company, formerly known as Bitfarms, disclosed in its latest quarterly filing that it made $51.8 million in new equipment and construction prepayments during the first quarter, bringing its total long-term deposits and equipment prepayments to $81.4 million as of March 31, up sharply from $31.0 million at the end of 2025.
The spending was primarily tied to the conversion and development of high-performance computing (HPC), data centers as KEEL seeks to reposition itself as a digital infrastructure provider for AI and cloud workloads.
The company also disclosed another $170.3 million in contractual commitments tied to its infrastructure buildout, including $121.4 million due through the remainder of 2026 and an additional $48.9 million scheduled for 2027. The agreements span engineering, manufacturing, project management, procurement and factory acceptance testing for its expanding North American pipeline.
KEEL further expanded those commitments after the quarter ended. On May 3, the company entered into a $32.6 million agreement to develop an 18-megawatt hybrid-built data center in Washington state, covering the procurement, installation and commissioning of generators and related infrastructure over an estimated 14-month timeline.
The Washington project forms part of KEEL’s broader push into U.S. AI infrastructure markets, leveraging hydroelectric power supplied by the Grant County Public Utility District. The company said its North American infrastructure pipeline reached 2.2 gigawatts of power capacity by the end of the first quarter.
At the same time, KEEL is increasingly monetizing legacy Bitcoin mining assets to fund the transition.
The company sold 269 Bitcoin for approximately $20 million in proceeds between Jan. 1 and May 8 as part of its previously announced wind-down of its Bitcoin treasury position. Bitcoin production also fell to 466 BTC during the quarter from 640 BTC in the fourth quarter of 2025, reflecting a continued reduction in mining capacity across both continuing and discontinued operations.
KEEL additionally finalized the sale of its Paso Pe Bitcoin mining data center in Paraguay for $13 million on April 21 and entered into an agreement on May 8 to sell its Argentina subsidiary, continuing its retreat from Latin American mining operations.
The filing also highlighted the growing financial obligations tied to the company’s Panther Creek campus in Pennsylvania, a key site in its HPC conversion strategy following its acquisition of Stronghold in 2025.
In March, KEEL entered into an agreement with a utility provider for high-voltage electricity service at Panther Creek, including potential transmission and substation construction to support large-scale AI infrastructure deployment.
As part of the arrangement, KEEL issued a $40 million letter of credit backed by $40.2 million in restricted cash and committed to providing another $60.8 million letter of credit by January 2027, contingent on transmission upgrades being completed.
The Panther Creek site had 60 MW of energized capacity as of March 31, though the capacity was not yet under an energy service agreement and was excluded from the company’s secured gross data center capacity metrics.
KEEL’s infrastructure transition also weighed on earnings through accelerated depreciation of mining assets being phased out. The company said the cost of revenues increased by $9.2 million due to depreciation and amortization tied to new electrical infrastructure and legacy mining equipment retirements.
Infrastructure-related operating costs at Panther Creek also climbed sharply following the Stronghold acquisition, including $3.6 million in labor expenses, $3.9 million in maintenance costs and $3.8 million in other operating expenses during the quarter.
The company had previously refinanced Panther Creek through a $300 million project debt facility with Macquarie Group in October 2025, but fully repaid and terminated the facility in February, resulting in a $21.6 million loss on extinguishment of debt.
