Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 10, 2026 · Beat 2 of last 5 quarters
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Keel's progress underscores the critical role of secured power and permitting in the AI infrastructure buildout, as the company leverages its 2027-ready capacity to attract hyperscalers and AI companies. The successful $458M convertible offering and continued site development signal that capital is flowing to power-constrained data center developers, reinforcing the thesis that power availability is the key bottleneck. Keel's ability to monetize its pipeline through leases will be a bellwether for the broader market's appetite for pre-leased capacity.
Q2 2026 revenue was $30M, down from $61M in the prior year, due to lower Bitcoin prices and the shutdown of Moses Lake mining operations. Operating loss was $141M, including $63M of accelerated depreciation from mining rig shutdowns and a $20M loss on Bitcoin fair value changes. The company closed a $458M convertible notes offering in June, upsized from $350M, and had $819M in liquidity as of August 7. Permitting advanced across all three priority sites, with Moses Lake receiving first Vertiv modules and Sharon securing full zoning and land development approval. Management noted that all three sites have multiple potential customers engaged, and they are evaluating lease structures including modified gross at Moses Lake and triple net at Sharon.
Management expressed increased confidence in converting ~2 GW of Pennsylvania expansion capacity into signed ESAs, with a fulsome update expected as early as December or January. They noted that permitting delays at Panther Creek do not change the planned power delivery schedule or economics, and the earliest RFS date remains 2027. The company expects Moses Lake to be the first site online in 2027, with Sharon and Panther Creek also targeting end-of-2027 RFS. Management emphasized that liquidity of $819M fully funds site development through lease signing and cash SG&A through 2028, and they plan to finance construction post-lease signing with project-level debt, favoring investment-grade offtake. They also intend to liquidate the remaining Bitcoin position in 2026. Overall tone was confident, with management describing the current phase as a 'goldilocks' window for commercial negotiations.
“Holding the bottleneck everyone needs to grow means we are negotiating from strength, and we will focus on optimizing across customers, economics and cost of capital.”
on Commercial strategy
“We are not going to cap the upside of a generational asset in order to deliver a headline.”
on Lease timing
“We are better capitalized today than at any point in this company's history and that capital position gives us something invaluable in this market, the ability to both advance and derisk our sites at the pace our customers require.”
on Capital position
How are potential tenants viewing the regulatory backdrop and what might be the impact on their timeframe?
Ben noted that regulatory actions in other states increase the value of unaffected sites, and Pennsylvania's 'second mover advantage' with a solid framework for large industrial projects positions it well. He remains confident in the permitting process and commercial progress.
Is there a dual process around addressing permitting issues, particularly regarding backup power generation and environmental permits?
Ben acknowledged that backup generators can trigger environmental permitting challenges, but noted that different generator efficiencies and expected usage can affect permits. He confirmed they evaluate BESS and alternative solutions to compress timelines.
Is Keel still targeting 3 leases announced in 2026, given the extended timeline for Panther Creek?
Ben said they are still in active due diligence and negotiations at all three sites, with strong interest. He declined to give specific timing but reiterated confidence based on commercial process and permitting progress, noting that closer to energization, the value of power increases.