$KEEL earnings report

Q3 results reflect Keel's planned transition away from U.S. Bitcoin mining and toward HPC/AI infrastructure development. Revenue was 27,603 (U.S.$ in thousands), down (59) %, which the Company attributed to the cessation of U.S. Bitcoin mining operations during Q2 2026 and a decline in average Bitcoin price. The reduced legacy revenue base was accompanied by a gross loss of (14,598) (U.S.$ in thousands) and a gross margin of (53) %.

Operating performance was pressured by higher development-stage overhead. General and administrative expenses were (34,289) (U.S.$ in thousands), up 100 %, reflecting senior hiring, professional fees and higher stock-based compensation. Operating loss improved to (7,672) (U.S.$ in thousands) from (18,469) (U.S.$ in thousands), but this included a 73,564 (U.S.$ in thousands) change in fair value of digital assets. Adjusted EBITDA from continuing operations was (27,447) (U.S.$ in thousands), compared with 19,236 (U.S.$ in thousands).

Below operating income, a (55,300) (U.S.$ in thousands) loss on derivative assets and liabilities drove loss from continuing operations to (62,388) (U.S.$ in thousands), or a $0.10 loss per basic and diluted share. The Company identified this as primarily a $55 million non-cash unrealized loss on the fair value of capped calls associated with the 2025 convertible notes offering. During the quarter it also sold 2,520 Bitcoin for $192 million in proceeds and ended September 30 with nominal Bitcoin holdings.

The operational milestones center on monetizing the HPC pipeline. Moses Lake received all necessary permits and began construction in September 2026, with HPC revenue expected in 2027. Sharon and Panther Creek cleared three permits but still have four environmental permits remaining, including two in draft stage. Management also cited expansion studies at Panther Creek and Scrubgrass, due in Q1 2027, that represent up to a ~300% potential increase in Secured 1 Capacity from 478 MW to 1,928 MW.

Liquidity was approximately $780 million in unrestricted cash as of November 4, 2026, and management stated it had no current need for debt or equity financing before signing a lease. The release did not provide financial revenue, margin, expense or tax-rate guidance. The critical reported milestones are lease execution, project financing, remaining permits, site construction and energization needed to convert the development pipeline into HPC revenue.

Keel's reported continuing legacy operations weakened substantially in the second quarter. Revenue was $30 million, down 50% year over year, which the Company attributed to a lower average Bitcoin price and the April shutdown of Moses Lake cryptocurrency mining operations in the U.S. The operating result moved to a $141 million loss from operating income of $11 million in Q2 2025, while loss from continuing operations was $64 million compared with income from continuing operations of $13 million in Q2 2025. Adjusted EBITDA was negative $24 million, down from $7 million in Q2 2025.

The cost profile reflects Keel's transition from Bitcoin mining toward HPC infrastructure development. General and administrative expenses were $31 million versus $19 million in Q2 2025, driven by hiring of senior subject-matter experts for the project-management phase. The reported operating loss included non-cash depreciation of $84 million, compared with $26 million of non-cash depreciation included in Q2 2025 operating income. The release also states that Latin American assets are classified as discontinued operations and that continuing operations refer to the North American portfolio.

Operational activity centered on advancing the three priority development sites. Keel reported zoning and land-development approvals at Panther Creek and Sharon, progressing environmental permit applications across all three sites, first Vertiv module delivery at Moses Lake, additional long-lead-time deliveries at Sharon and Moses Lake, and final fiber-contract execution across the sites. It also completed decommissioning of all U.S. Bitcoin mining operations in preparation for HPC construction. Management described active negotiations with prospective tenants and stated that the priority sites are nearing full permitting.

Capital resources were the major offset to weak legacy financial results. The Company raised $458 million through a convertible note offering and reported approximately $819 million of liquidity as of August 7, 2026, including approximately $698 million of unrestricted cash and approximately $121 million of unencumbered Bitcoin. Keel also sold 1,085 Bitcoin for $75 million in proceeds as part of the planned Bitcoin wind down, leaving 1,861 BTC as of August 7, 2026. The release provided no quantitative financial outlook, so the next evidence points are permitting completion, customer agreements, construction financing, and conversion of the development pipeline into operating data-center capacity.