Keel Infrastructure Q3 revenue drops 59% as Bitcoin mining winds down

Overview

• Digital infrastructure firm's Q3 revenue fell sharply yr/yr as Bitcoin mining wound down

• Net loss widened, mainly due to non-cash losses tied to derivative assets

• Company maintains strong liquidity and does not expect to need financing before lease signing

Outlook

• Company expects Moses Lake site to begin generating HPC revenue in 2027

• Company expects load studies for Panther Creek and Scrubgrass expansion to complete in Q1 2027

Result Drivers

• BITCOIN MINING WIND-DOWN - Co said revenue drop was mainly due to deliberate cessation of US Bitcoin mining operations and lower average Bitcoin price

• HIGHER EXPENSES - Co attributed rise in general and administrative expenses to increased hiring, professional fees and higher stock-based compensation

• DERIVATIVE LOSSES - Co said widened net loss was mainly due to non-cash unrealized loss on derivative assets tied to convertible notes

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the blockchain & cryptocurrency peer group is "buy"

• Wall Street's median 12-month price target for Keel Infrastructure Corp is $5.50, about 161.9% above its November 4 closing price of $2.10

Reuters Recommended Reads

• Nov 2 - Cipher Digital Q3 revenue drops as bitcoin mining declines

• Nov 4 - Riot Platforms Q3 revenue beats estimates as data center unit growth offsets weak bitcoin prices

• Nov 4 - Hut 8 Q3 revenue falls, misses analyst expectations

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)