KEEL

Keel Infrastructure (the rebranded Bitfarms, KEEL effective April 2026) is a speculative narrative trade dressed up as an infrastructure investment. The fundamentals are deeply impaired: FY2025 revenue grew 72% to $229M, but gross profit was NEGATIVE $18.9M (gross margin -8.2%), operating losses widened to -$150M, and net income collapsed to -$285M from -$28.4M the prior year — a 903% deterioration. The company burned $227M in operating cash flow and diluted shareholders by 25.8% in a single year. Retained earnings sit at -$612M, confirming this is a chronically unprofitable business.

The MD&A makes clear the entire investment case rests on a pivot the company has not yet executed. Management states they are 'pivoting away from our historical focus on Bitcoin Mining... to concentrate on the United States HPC data center market,' yet explicitly admits: 'As of December 31, 2025, this growth area had not yet generated revenue.' Meanwhile, the legacy Bitcoin mining business is structurally challenged — the April 2024 halving cut block rewards in half, total Bitcoin earned was essentially flat at 2,008 (vs 1,992 in FY2024) despite fleet upgrades, and the next halving in 2028 will halve rewards again. The Rio Cuarto Argentina operation was abandoned in May 2025 after energy supply was halted. The 2.2 GW pipeline cited (648 MW secured, 1,513 MW 'planned') is aspirational — converting Bitcoin mining sites to hyperscaler-grade HPC requires massive capex, hyperscaler contracts, and execution KEEL has not demonstrated.