Updated Aug 10 at 10:15am ET.
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Keel reported a loss of 18 cents per share this quarter, which was wider than the 7 cent loss analysts expected. Revenue came in at 30 million dollars, matching what the market anticipated. The company is currently in a transition phase, spending heavily to turn its old digital asset mining sites into high-performance data centers that can host AI hardware for major tech firms.
Management noted they have about 819 million dollars in liquidity, which is the cash and credit they have available to fund this construction. They are currently negotiating with potential tenants for three priority sites. Because energy is the biggest bottleneck for the AI industry, Keel's secured power contracts in regions like Washington and the PJM market, which covers much of the eastern U.S., give it a significant advantage in these talks.
Source: 8-K filing
The company will share its second quarter results and host a call with analysts on August 10. These updates are a key time for the business to show how it is progressing with its shift from crypto mining to building data centers for artificial intelligence.
Source: GlobeNewsWire
BTIG set its target for the stock at 8 dollars, which is significantly higher than where it trades today. This suggests analysts see a lot of room for the stock to rise as it builds out its new data center capacity.
Source: BTIG
The city of Sherbrooke approved an agreement for the company to take over 96 megawatts of existing power capacity and buy land for a new data center.
Securing power is the hardest part of building data centers today because the electrical grid is often stretched thin. Getting this much capacity locked in helps the company stay on track with its plan to grow its hosting business for artificial intelligence.
Source: Globe News Wire
Ganesh Aiyer is joining the company as President after serving as the Chief Business Officer at Digital Realty Trust. He brings 25 years of experience in the data center industry to the team.
This is a significant hire because Digital Realty is one of the largest data center owners in the world. Bringing in an executive with that background suggests the company is serious about its pivot from crypto mining to becoming a major player in professional data center infrastructure.
Source: 8-K filing
Analysts have recently shown renewed interest in the company following its shift toward AI data centers. All 4 analysts rate the stock a buy, with an average target price that suggests a 60% gain from current levels.
The company has missed analyst targets for three quarters in a row. This suggests the pivot from crypto to AI is proving more expensive and taking longer than Wall Street expected.
| Expectation | |
|---|---|
| EPS | $-0.07 |
| Revenue | $31M |
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