Olenox Industries Acquires CS Digital Ventures to Launch Energy-Led Digital Infrastructure Platform

Olenox Industries (NASDAQ: OLOX) has finalized its acquisition of CS Digital Ventures LLC, launching an energy-led digital infrastructure platform that converts low-cost natural gas into compute power at the point of generation. The transaction, which included $30 million in upfront consideration, positions Olenox to meet the surging demand for energy-intensive data centers, particularly for artificial intelligence and high-performance computing workloads.

This acquisition pairs Olenox's upstream natural gas position, midstream capabilities, and proprietary processing technology with CS Digital's expertise in operating institutional-scale data centers. CS Digital brings approximately 35 MW of installed operating power capacity, projected 2025 revenue of $20.6 million, and projected 2025 EBITDA of $6.2 million. The combined platform targets the development of off-grid, gas-powered data centers with all-in power costs below $0.02 per kWh.

The upfront consideration comprised $14 million in Series D Preferred Stock and a $16 million unsecured promissory note, along with warrants to acquire 1.5 million shares of Olenox common stock. There is also potential for an additional $20 million in milestone-based preferred stock consideration. This move comes as the tech industry faces increasing power constraints and rising electricity costs.

By using natural gas directly at the point of generation, the platform bypasses traditional grid limitations and costs. This approach could be particularly attractive for AI companies that require massive computational power and are seeking reliable, low-cost energy sources. For more information on the acquisition, visit the full press release at https://ibn.fm/OcULR.

Olenox Industries is a vertically integrated energy company operating across multiple business lines, including oil and gas, energy services, and energy technologies. The company is focused on acquiring, optimizing, and scaling energy-related infrastructure and operating assets across key U.S. markets. For the latest news and updates relating to Olenox Industries, visit the company's newsroom at https://ibn.fm/OLOX.

The implications of this announcement are significant for Texas and beyond. By integrating energy production with digital infrastructure, Olenox is addressing two critical challenges: the growing energy demands of AI and the need for cost-effective, reliable power. This platform could lower barriers for data center development in regions with abundant natural gas, potentially reshaping the economics of high-performance computing. For Texas, a state rich in natural gas resources, this could attract new investment and create jobs in both the energy and tech sectors.