Olenox Industries Acquires CS Digital to Launch Energy-Led AI Data Center Platform

In a strategic move to bridge the gap between energy production and digital infrastructure, Olenox Industries (NASDAQ: OLOX) has closed its acquisition of CS Digital Ventures LLC, launching an innovative energy-led digital infrastructure platform. The platform is designed to convert low-cost natural gas into compute power directly at the point of generation, targeting the burgeoning demand for AI and high-performance computing workloads. The transaction includes $30 million in upfront consideration, consisting of $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. Additionally, there is potential for an extra $20 million in milestone-based preferred stock consideration. This merger combines Olenox’s robust upstream natural gas position, midstream capabilities, and proprietary processing technology with CS Digital’s expertise in operating institutional-scale, energy-intensive data centers. CS Digital brings approximately 35 MW of installed operating power capacity, with projected 2025 revenue of $20.6 million and EBITDA of $6.2 million. The company aims to develop off-grid, gas-powered data centers with all-in power costs below $0.02 per kWh, a critical factor for cost-effective AI compute.

Olenox Industries Inc. (NASDAQ:OLOX) is a vertically integrated energy company operating across oil and gas, energy services, and energy technologies, focused on acquiring, optimizing, and scaling energy-related infrastructure and operating assets in key U.S. markets. The collaboration with CS Digital Ventures positions Olenox to capitalize on the intersection of energy and digital infrastructure. This acquisition is not just a financial transaction but a strategic alignment that leverages the strengths of both entities to address the growing need for efficient, low-cost power for data centers. The combined platform is expected to offer a compelling solution for AI and other compute-intensive applications, potentially disrupting the traditional data center model by reducing reliance on the grid and lowering operational costs.

Investors and industry watchers can find the latest news and updates relating to OLOX in the company’s newsroom at https://ibn.fm/OLOX. The press release was distributed via InvestorWire (IW), a specialized communications platform within the Dynamic Brand Portfolio @ IBN. IW offers advanced wire-grade press release syndication, article and editorial syndication to 5,000+ outlets, enhanced press release enhancement, social media distribution, and a full array of tailored corporate communications solutions. This comprehensive approach ensures that breaking news reaches a wide audience of investors, influencers, and the general public.