Shares of Keel Infrastructure (formerly Bitfarms) cratered 11.9% to $3.42 on August 10 after the company's second-quarter results laid bare the cost of abandoning its Bitcoin mining roots before new AI data center revenue can fill the gap. Revenue fell 50% year over year to $30.4 million, driven by lower Bitcoin prices and the April shutdown of its Moses Lake crypto mining site.

The loss from continuing operations came in at $(0.11) per share, six cents worse than the $(0.05) consensus. This is no ordinary earnings miss — it's the financial portrait of a company dismantling one business before the next one turns on.

  • The Old Business Is Dying Faster Than the New One Is Growing. Keel's revenue collapse stems directly from its active pivot away from legacy Bitcoin mining, with decommissioning underway in Latin America and at Moses Lake.

KBW estimates the company will wind down its entire 14.8 EH/s mining fleet during 2026 as power costs rise. That creates a deliberate revenue vacuum — one management chose — but investors are paying the price now with no replacement income in sight.

  • Overhead Is Surging While the Top Line Shrinks. General and administrative expenses rose 62% to $31.3 million as Keel hired staff to support its high-performance computing buildout.

Adjusted EBITDA swung to negative $23.7 million, versus positive $6.6 million a year earlier. The company is spending like a growth startup while its income statement looks like a company in decline.

  • There's Cash, But the Runway Has Limits. Keel raised $458 million via convertible notes (debt that can later convert into stock) and reported $819 million in total liquidity as of August 7, including $698 million in cash.

KBW believes the company can fund roughly $265 million in capital spending without another capital raise. That sounds reassuring — until you factor in quarterly cash burns approaching $24 million and a construction timeline stretching into 2027.

  • Management's Targets Sound Ambitious; the Market Isn't Buying. Keel said prospective tenants are negotiating at each of its three priority sites.

Yet 10 of 11 analysts still carry a Buy rating with a $6.40 average price target — nearly double today's price. That gap signals Wall Street is betting on the destination while today's sellers are focused on the painful journey. The stock is down roughly 19% from its early-August levels, a verdict that management's rebranding and conference-call optimism have yet to overcome.