KEEL Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Revenue: $30 million, down from $61 million in Q2 2025, primarily due to the shutdown of cryptocurrency mining operations and lower Bitcoin prices.

Operating Loss: $141 million, compared to operating income of $11 million in the prior year, including $63 million in accelerated depreciation related to mining rig shutdowns.

Loss from Continuing Operations: $64 million ($0.11 per share), down from income of $13 million in Q2 2025.

Adjusted EBITDA: Negative $24 million, compared to positive $7 million in the prior year.

Bitcoin Sales: Sold 1,085 Bitcoin for $75 million; remaining Bitcoin balance is 1,861.

Liquidity: Total liquidity increased to $819 million from $533 million, supporting ongoing site development and operational costs through 2028.

2Strategic Updates and Business Highlights

Transitioned from Bitcoin and Latin America to focus on high-performance computing (HPC) and AI infrastructure in the U.S.

Advanced permitting and leasing across three priority sites: Moses Lake, Sharon, and Panther Creek, with clear visibility on permit completion.

Welcomed Ganesh Aiyer as President to enhance commercial strategy.

Significant progress in securing expansion capacity, particularly in Pennsylvania and Sherbrooke, Quebec, where a new 96-megawatt HPC and AI power purchase agreement is anticipated.

3Forward Guidance and Outlook

Anticipates delivering energized infrastructure by 2027, with strong demand for power from leading AI companies.

Confident in securing additional power capacity and expects to provide updates on expansion plans by December or January.

Remains focused on optimizing lease agreements to maximize long-term shareholder value, rather than rushing into premature contracts.

4Bad News, Challenges, or Points of Concern

Significant operating losses and declining revenue metrics due to the cessation of Bitcoin mining operations.

Environmental permitting processes are taking longer than expected, particularly for Panther Creek, which may affect timelines.

Broader macroeconomic risks, including fluctuating interest rates and capital market conditions, pose potential challenges for financing and operational execution.

5Notable Q&A Insights

Regulatory Environment: The political backdrop around data centers is being closely monitored; regulatory changes in some states could increase the value of unaffected sites like those in Pennsylvania.

Permitting Process: Environmental permitting remains a concern, especially regarding backup power generation, but current projects are progressing well without significant political sensitivity.

Demand Dynamics: High demand for 2027 power is keeping potential tenants engaged, with multiple negotiations ongoing across all sites.

Market Position: Keel is well-positioned to capitalize on the scarcity of near-term power, with a strong focus on securing long-term, stable leases with creditworthy tenants. Overall, while KEEL is navigating significant operational challenges and financial losses, it is strategically positioned for growth in the HPC and AI sectors, with strong demand for its infrastructure solutions.