Blab Tech
Keel Infrastructure Surges After $458 Million Convertible Note Deal and AI-Infrastructure Pivot
Keel Infrastructure Corp. (NASDAQ: KEEL, TSX: KEEL), formerly known as Bitfarms Ltd., climbed to the top of the Toronto Stock Exchange’s percentage gainers list on June 19, 2026. The stock traded at $10.24, up $1.40 or 15.82 %, on a volume of more than 5.1 million shares, as investors reacted to the company’s recent financing and its announced shift from Bitcoin mining to artificial‑intelligence (AI) and high‑performance computing (HPC) infrastructure.
The move is being financed by a $458 million convertible senior note offering that closed on June 9. The notes carry a 1.250 % annual coupon, payable semi‑annually in arrears beginning January 15, 2027, and mature on January 15, 2032. After deducting the $58 million option exercised by initial purchasers, Keel received net proceeds of $445.4 million. The notes are guaranteed on a senior unsecured basis by Bitfarms Ltd., a wholly‑owned subsidiary.
Keel set the initial conversion price at approximately $7.41 per share, a 25 % premium to the last reported Nasdaq price of $5.93 on June 4, 2026. The capped call transaction’s initial cap price is $11.86 per share, a 100 % premium to the same Nasdaq price. The company said the proceeds will be used to pay the cost of the capped call transaction and for general corporate purposes, including funding deposits for long‑lead equipment and collateralizing letters of credit that support the expansion and acceleration of its data‑center projects.
The company’s strategy is to transform its North American digital‑energy assets into leased AI and HPC data‑center revenue. Keel has already secured fully funded development of three key sites: Panther Creek in Pennsylvania, Sharon in Canada, and Moses Lake in Washington. In addition, the company has a multi‑billion‑dollar government contract package for rail and infrastructure projects that is expected to provide further capital and regulatory support.
Keel’s pivot follows a broader trend of former cryptocurrency miners turning to AI‑related workloads, which demand high‑density power and cooling. The company’s data‑center sites are designed for low‑power density, high‑efficiency operations, making them attractive to hyperscale tenants.
The stock’s recent rally reflects market confidence that the company’s existing liquidity is sufficient to develop the Panther Creek, Sharon and Moses Lake sites through leasing, and that the new capital will enable value‑add investments across its current developments.
Keel’s announcement was accompanied by a surge in trading activity. The company’s shares were among the most heavily traded on the TSX that day, with a volume of over 5 million shares. The price increase was driven by retail and institutional buyers who see the company’s AI focus as a long‑term growth driver.
Analysts note that the convertible note structure gives Keel flexibility. The 1.25 % coupon is modest compared with typical high‑yield debt, and the conversion terms provide upside potential if the company’s share price rises above the conversion price.
Keel’s CEO, who stepped down from Bitfarms in 2019, has emphasized that the company’s energy‑infrastructure expertise positions it well for the AI market. The company’s board has approved the shift and is overseeing the transition of its mining operations to data‑center operations.
The company’s financial statements show a first‑quarter operating loss of $98 million, largely due to non‑cash digital‑asset losses and credit‑facility extinguishment. The new debt issuance is intended to replace the credit facility and provide a more stable financing base.
Keel’s move is part of a larger industry shift. Several former crypto‑mining firms are repurposing their data‑center assets for AI workloads, and the trend is attracting attention from investors and regulators alike.
In summary, Keel Infrastructure’s recent convertible note issuance and its announced pivot to AI and HPC infrastructure have driven a sharp rise in its share price. The company plans to use the proceeds to fund capped call transaction costs and to support the development of its Panther Creek, Sharon and Moses Lake data‑center sites. The company’s existing liquidity and government contracts are expected to provide a solid foundation for its new strategy.
The company’s next milestones will include the completion of permitting and construction at its key sites, the finalization of its government contract package, and the first revenue‑generating leases at its data‑center facilities. Investors will continue to monitor the company’s progress as it transitions from a Bitcoin miner to an AI‑infrastructure provider.
The move is being financed by a $458 million convertible senior note offering that closed on June 9. The notes carry a 1.250 % annual coupon, payable semi‑annually in arrears beginning January 15, 2027, and mature on January 15, 2032. After deducting the $58 million option exercised by initial purchasers, Keel received net proceeds of $445.4 million. The notes are guaranteed on a senior unsecured basis by Bitfarms Ltd., a wholly‑owned subsidiary.
Keel set the initial conversion price at approximately $7.41 per share, a 25 % premium to the last reported Nasdaq price of $5.93 on June 4, 2026. The capped call transaction’s initial cap price is $11.86 per share, a 100 % premium to the same Nasdaq price. The company said the proceeds will be used to pay the cost of the capped call transaction and for general corporate purposes, including funding deposits for long‑lead equipment and collateralizing letters of credit that support the expansion and acceleration of its data‑center projects.
The company’s strategy is to transform its North American digital‑energy assets into leased AI and HPC data‑center revenue. Keel has already secured fully funded development of three key sites: Panther Creek in Pennsylvania, Sharon in Canada, and Moses Lake in Washington. In addition, the company has a multi‑billion‑dollar government contract package for rail and infrastructure projects that is expected to provide further capital and regulatory support.
Keel’s pivot follows a broader trend of former cryptocurrency miners turning to AI‑related workloads, which demand high‑density power and cooling. The company’s data‑center sites are designed for low‑power density, high‑efficiency operations, making them attractive to hyperscale tenants.
The stock’s recent rally reflects market confidence that the company’s existing liquidity is sufficient to develop the Panther Creek, Sharon and Moses Lake sites through leasing, and that the new capital will enable value‑add investments across its current developments.
Keel’s announcement was accompanied by a surge in trading activity. The company’s shares were among the most heavily traded on the TSX that day, with a volume of over 5 million shares. The price increase was driven by retail and institutional buyers who see the company’s AI focus as a long‑term growth driver.
Analysts note that the convertible note structure gives Keel flexibility. The 1.25 % coupon is modest compared with typical high‑yield debt, and the conversion terms provide upside potential if the company’s share price rises above the conversion price.
Keel’s CEO, who stepped down from Bitfarms in 2019, has emphasized that the company’s energy‑infrastructure expertise positions it well for the AI market. The company’s board has approved the shift and is overseeing the transition of its mining operations to data‑center operations.
The company’s financial statements show a first‑quarter operating loss of $98 million, largely due to non‑cash digital‑asset losses and credit‑facility extinguishment. The new debt issuance is intended to replace the credit facility and provide a more stable financing base.
Keel’s move is part of a larger industry shift. Several former crypto‑mining firms are repurposing their data‑center assets for AI workloads, and the trend is attracting attention from investors and regulators alike.
In summary, Keel Infrastructure’s recent convertible note issuance and its announced pivot to AI and HPC infrastructure have driven a sharp rise in its share price. The company plans to use the proceeds to fund capped call transaction costs and to support the development of its Panther Creek, Sharon and Moses Lake data‑center sites. The company’s existing liquidity and government contracts are expected to provide a solid foundation for its new strategy.
The company’s next milestones will include the completion of permitting and construction at its key sites, the finalization of its government contract package, and the first revenue‑generating leases at its data‑center facilities. Investors will continue to monitor the company’s progress as it transitions from a Bitcoin miner to an AI‑infrastructure provider.
