Olenox Industries (NASDAQ: OLOX) has finalized its acquisition of CS Digital Ventures LLC, marking a strategic entry into the energy-led digital infrastructure sector. The deal, valued at $30 million in upfront consideration, establishes a platform that converts low-cost natural gas into computational power directly at the point of generation. This move targets the escalating demand for energy-intensive data centers, particularly for artificial intelligence and high-performance computing workloads.
The transaction 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 contributes approximately 35 MW of installed operating power capacity, with projected 2025 revenue of $20.6 million and EBITDA of $6.2 million. The combined platform aims to develop off-grid, gas-powered data centers that achieve all-in power costs below $0.02 per kWh, significantly undercutting traditional grid-based electricity rates.
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. An additional $20 million in milestone-based preferred stock consideration is possible, contingent on achieving certain performance targets.
This acquisition comes at a time when the tech industry faces mounting power constraints and escalating electricity costs. By bypassing traditional grid limitations and leveraging natural gas directly at the point of generation, Olenox offers a solution that could be particularly attractive for AI companies requiring massive computational power with reliable, low-cost energy sources. The platform's ability to site data centers near natural gas reserves reduces transmission losses and provides energy price stability.
Olenox Industries is a vertically integrated energy company operating across oil and gas, energy services, and energy technologies. The company focuses on acquiring, optimizing, and scaling energy-related infrastructure and operating assets across key U.S. markets. For more information on the acquisition, visit the full press release at https://ibn.fm/OcULR. For the latest news and updates relating to Olenox Industries, visit the company's newsroom at https://ibn.fm/OLOX.
