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Bitfarms stock rises following the abandonment of its ‘bitcoin company’ label and a renewed focus on AI with a U.S. expansion.
The company announced it will concentrate on establishing data centers for high-performance computing and artificial intelligence tasks.
Bitfarms facility in Saint-Hyacinthe, Quebec, Canada. (CoinDesk archives)
What to know:
- Bitfarms announced its intention to relocate its legal headquarters from Canada to the United States, rebranding as Keel Infrastructure.
- This transition is part of the company’s shift from bitcoin mining to the construction of data centers focused on high-performance computing and artificial intelligence tasks.
- The firm has initiated the repayment of a $300 million credit facility, starting with $100 million related to its Panther Creek facility.
- Bitfarms’ (BITF) stock experienced an 18% increase following this announcement.
Bitfarms (BITF) is transitioning its legal headquarters from Canada to the United States and will undergo a rebranding to Keel Infrastructure as it shifts its focus from bitcoin mining to data center development for high-performance computing (HPC) and artificial intelligence (AI) workloads.
The process of redomiciling, disclosed in a press release on Friday, will require shareholder, regulatory, and court approvals. A vote by shareholders is set for March 20, and if sanctioned, the company anticipates completing the transition by April 1. The new parent entity, which will be incorporated in Delaware, is expected to be listed on the Nasdaq and Toronto Stock Exchange under the ticker symbol KEEL.
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Following the announcement, Bitfarms’ stock increased by 18%, recovering from a 16% decline on Thursday as AI infrastructure and crypto shares faced downward pressure.
The rebranding and relocation come after a strategic review lasting a year, during which Bitfarms evaluated market dynamics and investor perspectives, according to CEO Ben Gagnon. The move to the U.S. is expected to provide the company with better access to capital, streamline its corporate framework, and enhance its visibility to institutional investors, he noted.
"We are no longer a Bitcoin company," Gagnon stated, "We are now an infrastructure-first owner and developer for HPC/AI data centers throughout North America.
To align with its new direction, Bitfarms has commenced the repayment of its $300 million credit facility from Macquarie Group, initiating with $100 million associated with its Panther Creek facility in Pennsylvania. This repayment serves to lower debt while maintaining what the company describes as a robust liquidity status — $698 million as of February 5 — primarily consisting of cash and bitcoin.
After the transition, Bitfarms will continue to operate its facilities in both Canada and the U.S., but its office in New York City will serve as its exclusive headquarters.
