Keel Infrastructure (KEEL) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $42 million, up 17% year-over-year but down 16% sequentially, impacted by the Bitcoin halving.

• Gross mining margin was 51%, with adjusted EBITDA of $12 million (28% margin), and a net loss of $27 million.

• U.S. expansion is underway, notably with a 120MW Sharon, PA data center, increasing U.S. capacity sevenfold and supporting diversification into HPC/AI.

• The board ended its strategic alternatives review, opting for a standalone plan and openness to value-creating opportunities.

• Leadership changes include Ben Gagnon as CEO and Fanny Philip joining the board.

Financial highlights

• Q2 2024 revenue was $42 million, with a 51% gross mining margin and $12 million adjusted EBITDA.

• Operating loss was $24 million, with $46–57 million in accelerated depreciation due to miner replacement.

• Net loss was $27 million, or $0.07 per share, compared to a $6 million loss in Q1.

• 614 Bitcoin mined in Q2, with 1,016 Bitcoin held as of July 31, 2024.

• Total liquidity at Q2 end was $195 million, including $139 million in cash and $57 million in Bitcoin.

Outlook and guidance

• On track to reach 21 EH/s and 21 w/TH by year-end 2024, with growth fully funded.

• Targeting 35 EH/s and 648 MW by year-end 2025, with expansion in the U.S. and Paraguay.

• 2024 expected to deliver an 83% increase in operating capacity and a 40% fleet efficiency improvement.

• U.S. expansion and diversification into HPC/AI remain priorities.