Olenox Industries Closes CS Digital Acquisition to Launch Off-Grid, Gas-Powered Data Center Platform

Olenox Industries (NASDAQ: OLOX) announced the closing of its acquisition of CS Digital Ventures LLC, marking the launch of an energy-led digital infrastructure platform designed to convert low-cost natural gas into compute at the point of generation. The transaction positions Olenox to address the growing energy demands of artificial intelligence and other high-performance compute workloads through off-grid, gas-powered data centers.

Under the terms of the deal, Olenox paid $30 million in upfront consideration, consisting of $14 million in Series D Preferred Stock and a $16 million unsecured promissory note. Additionally, CS Digital received warrants to acquire 1.5 million shares of Olenox common stock and is eligible for up to $20 million in milestone-based preferred stock consideration. The combination leverages Olenox's upstream natural gas position, midstream capabilities, and proprietary processing technology alongside CS Digital's expertise in operating institutional-scale, energy-intensive data centers.

CS Digital brings approximately 35 MW of installed operating power capacity to the platform, with projected 2025 revenue of $20.6 million and projected 2025 EBITDA of $6.2 million. The company is targeting development of off-grid, gas-powered data centers with all-in power costs below $0.02 per kWh, which is significantly lower than typical grid costs, making it an attractive proposition for energy-intensive AI workloads.

The acquisition highlights the convergence of energy and digital infrastructure, as the demand for computing power continues to surge. By locating data centers at natural gas wellheads, Olenox aims to bypass grid constraints and reduce transmission losses, while also monetizing stranded or low-cost gas resources. This approach could help alleviate pressure on electrical grids and provide a more reliable power source for critical computing applications.

For investors, the deal offers exposure to the rapidly growing AI infrastructure market through a vertically integrated energy company. Olenox's ability to control the entire value chain—from gas extraction to computing—may provide cost advantages and operational efficiencies. The milestone-based consideration structure also aligns incentives between the acquiring and acquired entities.

The full press release is available at https://ibn.fm/OcULR. For more information about Olenox Industries, visit their newsroom at https://ibn.fm/OLOX.