Keel Infrastructure Corp. KEEL made a strategic pivot from its legacy Bitcoin mining business to high-performance computing (HPC) and AI data center development. While the company is betting on this strategic transformation to reap benefits, the stark reality is that the financial friction is immediate, while revenue growth is a long-term prospect.
The financial detriment in the first quarter of 2026 was stark. KEEL’s top line recorded a 23% year-over-year decline to $37 million. Combined with a 34% increase in costs, the gross margin stood at negative 71%. The operating loss widened to $128 million from the year-ago quarter’s loss of $35 million due to a $41-million loss related to a change in fair value of digital assets.
KEEL recorded a steep drop in adjusted EBITDA from the $7 million reported in the year-ago quarter to a negative $17 million. It was mainly caused by a $15-million increase in energy and infrastructure expenses and an unfavorable change of $7 million in gain/loss from the sale of digital assets. Finally, the company’s profitability took a toll as net loss widened to $145 million from the year-ago quarter’s loss of $55 million.
Sailing through this pre-revenue phase of HPC/AI pivot requires Keel Infrastructure to rely upon its balance sheet position. As of May 8, 2026, the company’s total liquidity amounted to nearly $533 million, comprising approximately $336 million in unrestricted cash and $197 million in unencumbered Bitcoin. Per Jonathan Mir, the CFO, capitalizing on this strong liquidity position, the company can cater to its customers swiftly while maintaining discipline and deploying capital where returns are evident.
Management stated that the priority for 2026 is execution-focused rather than revenue-focused. The aim is to sign three leases, including one each at Panther Creek, Sharon and Moses Lake, by the end of the year. These leases would represent a valuation inflection point since it converts development pipelines into long-term contracted cash flows. However, Ben Gagnon, the CEO, stated that revenues from these contracts will begin in 2027.
Therefore, we are bearish on Keel Infrastructure’s ability to witness growing revenues in 2026 and expect it to remain unprofitable for the year. The company’s true operational win in the short-term will not be measured by the top line, but its ability to convert its North American land into executed leases with tenants from the tech space before liquidity depletes.
KEEL’s Price Performance, Valuation & Estimates
Keel Infrastructure’s stock has skyrocketed 567.3% over the past year, outpacing the 16.4% rally in its industry. KEEL’s competitors, Dave DAVE and GDS Holdings GDS, have gained 26.8% and 53.8%, respectively.
1-Year Share Price Performance
Image Source: Zacks Investment Research
From a valuation perspective, KEEL trades at a 12-month forward price-to-sales ratio of 28.93, higher than Dave and GDS Holdings’ 4.4X and 3.86X, respectively.
Price/Sales F12M
Image Source: Zacks Investment Research
Keel Infrastructure has a Value Score of F, while Dave and GDS Holdings carry a C.
The Zacks Consensus Estimate for KEEL’s 2026 loss widened to 45 cents per share from 44 cents over the past 60 days. For 2027, loss narrowed to 19 cents per share from 22 cents over the past 60 days.
Image Source: Zacks Investment Research
KEEL currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
