New York, June 5, 2026, 10:05 EDT
- Keel shares dropped roughly 12% at the open on Nasdaq. The company had priced an upsized convertible-note sale.
- The deal was upsized to $400 million, above the $350 million planned earlier. Buyers could take as much as $58 million extra.
- The new financing gives Keel extra capital for AI data-center projects. But shareholders are again looking at the risk of dilution.
Keel Infrastructure Corp. shares fell early Friday after the company set terms for an expanded $400 million sale of convertible senior notes. It’s the latest move testing investor appetite as Keel ramps up spending on AI data centers.
The stock last traded at $5.22, off 12.0% for the session. Shares moved in a $5.19-to-$5.44 band. Volume came to 11.55 million according to Google Finance, which put the company’s market cap near $3.14 billion.
Keel is pushing to leave its Bitfarms bitcoin-mining roots in the past and build infrastructure for AI and high-performance computing, or HPC, which is used in large-scale computing. To make that shift, the company needs capital first. Lease revenue should follow later.
Keel said its convertible notes will pay 1.25% annually and come due Jan. 15, 2032. The company upsized the deal to $400 million from $350 million, and buyers have 13 days to buy up to $58 million more. The initial conversion price is set around $7.41 per share, which is a 25% premium to Thursday’s Nasdaq close of $5.93.
Some of the proceeds are set to go toward capped call transactions, options meant to reduce dilution if new shares are issued. Benzinga reported the initial cap price for the capped calls is $11.86 a share. The rest of the cash will be used for general corporate needs, such as data-center projects, equipment deposits and letters of credit.
The new financing arrives less than a month after Keel said it had a “strong balance sheet” with $533 million in liquidity as of May 8. Back in May, CFO Jonathan Mir told investors that the company’s liquidity “fully funds” Panther Creek, Sharon and Moses Lake up to lease execution, construction at Moses Lake, and corporate costs through 2028. GlobeNewswire
The stock likely fell on the contrast. Keel gets some breathing room with extra low-coupon money, which may help deal with customers and suppliers. But for now, common shareholders have to look past the chance of more share issuance before seeing results from the new data-center business at scale.
The race is heating up. IREN this week said it’s planning an 800-megawatt data center campus in South Australia. Bernstein bumped up targets for Riot Platforms and Core Scientific, according to Investor’s Business Daily, after bringing AI infrastructure into its model.
S&P 500 and Nasdaq were in the red at the open Friday. A stronger jobs number sparked worry over a longer period of tight Fed policy. The Nasdaq Composite slid 1.10% at the open.
Downside risk goes beyond the note sale. Keel has pointed to concerns like its short operating history, moving from bitcoin mining to HPC, reliance on cheap power, risks of project delays or cost overruns, data-center site competition, and needing more capital. Missed leases, higher power bills, or capped calls failing to offset dilution could keep shares under pressure, even if AI demand stays high.
