Keel Infrastructure (KEEL) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $42 million, up 17% year-over-year but down 16% sequentially, with a 51% gross mining margin and 614 Bitcoin mined; 1,016 Bitcoin held as of June 30, 2024.

• CEO transition completed, with new leadership emphasizing operational excellence and growth.

• Strategic alternatives review concluded; company will pursue a standalone growth plan.

• U.S. expansion highlighted by the Sharon, PA site, increasing U.S. capacity sevenfold and supporting diversification into HPC and AI.

• Board strengthened with the appointment of Fanny Philip, enhancing governance and digital assets expertise.

Financial highlights

• Q2 2024 revenue was $42 million, with mining revenue at $40 million and gross mining profit of $21 million (51% margin).

• Adjusted EBITDA was $12 million (28% margin), down from $23 million in Q1 2024.

• Net loss was $27 million, or $0.07 per share, compared to $6 million loss in Q1 2024.

• Operating loss was $24 million, including $57 million in accelerated depreciation.

• Total liquidity at June 30, 2024 was $195 million (cash $139 million, Bitcoin $57 million).

Outlook and guidance

• 2024 growth plan targets 21 EH/s and 21 w/TH by year-end, fully funded.

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

• Diversification into HPC and AI expected to begin integration in late 2025 or early 2026.

• 2024 expected to deliver 83% year-over-year operating capacity increase and 40% fleet efficiency improvement.

• U.S. expansion to accelerate, with Sharon site as a model for future growth.