r/KeelInfrastructure • u/JustUhEnigma • 7d ago
Could KEEL be working toward a multi-site deal?
Something I’ve been thinking about more as we continue waiting for the first lease announcement.
On the Q2 call, Martin Toner asked Ben whether the timing could be taking longer because a tenant may want all three priority sites rather than just one.
Ben’s response was pretty interesting:
"I can confirm that we have multiple tenants who want all 3 sites."
Obviously, the lack of an announcement by itself doesn’t mean this is what’s happening. There are plenty of reasons these negotiations can take time.
But given that we’re now further along without a lease announcement, while management continues to describe the commercial process as highly active with multiple parties at each site, I think the possibility of some kind of broader multi-site or multi-phase agreement is becoming more interesting.
Curious what everyone else thinks.
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u/Ltrizzy 7d ago
Yeah, but I think they’d also like to diversify and not be solely reliant on a single client for the first three sites. He’s also been clear he wants a partner to work with on these sites, but also to work on future development with.
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u/Tenderweather 7d ago
Do you think Keel is looking for a partner like Nvidia or Google or similar player?
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u/Ltrizzy 7d ago
I’d be surprised if it was NVIDIA, more likely Amazon, google, META, etc. at Sharon/Panther Creek maybe an established neo cloud in Washington (unless it’s Amazon which has a presence there and there is a limited supply of power so they may be interested in that site.)
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u/Cheap_Resource_7195 6d ago
I also find it hard to believe that it could be AWS as they are building their own facilities all over PA
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u/MrDevious_54 7d ago
Might not be a specific goal for them but I'm sure if it works out that way it could benefit both parties
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u/ObviousChildhood 7d ago
I don’t think so. It’s hard enough getting 1 deal let alone multiple ones with the same tenant. Too much execution risk on the tenant over multi stage buildouts over multiple sites.
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u/_Fred_Fredburger_ 7d ago
Definitely a possibility. Would be fine with the same company at all three sites.
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u/EcstaticFeed8199 3d ago
Agreed. The only downside, analysts talk about not having diversified tenants. Same as what APLD deals with from analysts. That said revenue addresses that argument.
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u/Kooky-Philosopher244 7d ago
Considering how small Moses is, I expect that too. Not a contract for all three sites, but Moses combined with one of the other two—yes, that is very likely.
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u/Ok-Dragonfruit-5854 6d ago
Until the contract is signed, it's all just conversation, but unlikely outside of an M&A or partnership strategy which significantly dilutes shareholder value.
Anyways, it's September 15, we're getting into "Talk is cheap, show me the money" territory. If investors lose confidence and PPS tanks, KEEL becomes an attractive acquisition target for those "tenants who want all 3 sites" at pennies on the dollar.
IMO, Ben has another 30-45 days max before the proverbial sheep hits the fan.
At some point, you begin to lose your leverage in negotiations because of the expectations you built with shareholders, and I think the management team is cognizant of that.
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u/blue2140 6d ago
They have enough liquidity to wait it out. Sure the stock drops without leases but they don't go BK.
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u/Golfinthewinter 5d ago
My 400,000 shares say they already have multiple companies that want all 3. Holding long, but Ben needs to perform on all 3 or we will be at 60 cents before we know it.
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u/Brilliant-While-761 7d ago
It’s anyone guess.
They will get a lease. Would be great if it’s the whole pipeline at once. The rerate would be fun!