Bitfarms Announces U.S. Redomiciliation and Rebrand to Keel Infrastructure, Yet AI Pivot Remains Unproven Amid Financial Turmoil

What happened

Bitfarms has revealed plans to redomicile to the United States and rebrand as Keel Infrastructure, with a shareholder meeting set for March 20, 2026 to approve the move. This aligns with its strategic pivot from struggling Bitcoin mining to AI and high-performance computing infrastructure, as detailed in recent filings. However, the company continues to grapple with severe financial distress, including negative free cash flow of -$69.2 million in Q3 2025 and material weaknesses in internal controls over complex financings. Despite the rebranding effort, Bitfarms has not disclosed any AI/HPC customer contracts, a critical gap that undermines the commercial viability of its new direction. The redomiciliation may aim to enhance U.S. market access, but it does little to address the core operational risks or governance issues highlighted in the DeepValue report.

Implication

This announcement underscores management's commitment to the AI pivot but does not provide evidence of commercial traction, leaving the stock reliant on speculative narrative rather than fundamentals. The absence of disclosed AI/HPC contracts remains a major risk, as Bitfarms' valuation hinges on future revenues that are unproven and may not materialize before late 2026. Governance concerns from past financial restatements and ongoing internal control weaknesses could deter institutional investors and increase cost of capital, further straining the balance sheet. While redomiciling to the U.S. might offer minor regulatory or market perception benefits, it does not alter the fact that the company is burning cash and faces execution risks in key projects like the Washington AI campus. Therefore, investors should await tangible milestones such as signed AI contracts or clean financial audits before considering any position, aligning with the DeepValue report's 'POTENTIAL SELL' rating.

Thesis delta

The redomiciliation and rebranding do not shift the investment thesis, which remains negatively skewed due to Bitfarms' lack of AI contracts, persistent financial losses, and unresolved governance issues. Instead, this move emphasizes management's focus on optics over substance, potentially distracting from the urgent need for operational proof points. Investors should view it as a non-event that reinforces the existing risks highlighted in the DeepValue report, warranting continued skepticism until concrete commercial and financial improvements emerge.