The Bitcoin mining company, Bitfarms, triggered a bullish rally in Bitfarms shares this Friday after announcing a radical shift in its business model. According to the official statement issued by management, the company will move its legal base from Canada to the United States, transforming into Keel Infrastructure to focus on data centers.
This strategic move, which seeks to capitalize on the growing demand for high-performance computing (HPC), pushed the firm’s securities up by 18%. In this way, the organization leaves behind its exclusive identity as a miner to position itself as a developer of advanced infrastructure for artificial intelligence workloads.
A structural transformation towards the technological infrastructure market
The redomiciling process, which will culminate in a new incorporation in Delaware, will allow the entity to access a vast ecosystem of U.S. institutional capital more directly. By simplifying its corporate structure, the company intends to optimize its valuation on the Nasdaq and Toronto Stock Exchange, trading under the new ticker symbol KEEL.
Furthermore, the firm has begun executing a solid financial plan to support this transition, starting the repayment of a $300 million credit facility. With an initial $100 million disbursement linked to its Panther Creek site, management aims to strengthen its balance sheet while maintaining a robust liquidity position of $698 million.
Why did Bitfarms decide to renounce its primary focus on Bitcoin?
The decision follows an annual strategic review where it was identified that the market values infrastructure providers for blockchain and AI with greater stability. By declaring that they are no longer a Bitcoin company, CEO Ben Gagnon emphasized that the priority now is the ownership and development of HPC/AI data centers.
On the other hand, the transition does not mean a total abandonment of its current assets, as Bitfarms will maintain its operational sites in Canadian territory during this phase. However, the main focus will be expansion in North America, where the demand for computing services for large language models and data processing continues to break historical records.
Finally, the shareholder vote on March 20 is expected to legally ratify this metamorphosis, closing the process definitively by April 1. Industry analysts will closely follow this evolution, which could serve as a model for other mining companies looking to diversify their revenue streams in an increasingly competitive macroeconomic environment.
