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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

$27.60 mln

Q3 Net Loss

$62.71 mln

Q3 Operating Income

-$7.67 mln


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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