Olenox Industries (NASDAQ: OLOX) announced the close 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, which included $30 million in upfront consideration, positions the combined entity to develop off-grid, gas-powered data centers targeting all-in power costs below $0.02 per kWh to support AI and other high-performance compute workloads.
The upfront consideration consisted 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. The deal also includes the potential for an additional $20 million in milestone-based preferred stock consideration. This acquisition pairs Olenox’s 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 contributes approximately 35 MW of installed operating power capacity to the combined platform. The company projects 2025 revenue of $20.6 million and 2025 EBITDA of $6.2 million. By integrating energy production directly with data center operations, the platform aims to reduce power costs significantly below typical grid prices, addressing one of the largest expenses in data center operations.
The move comes as demand for computational power surges, driven by AI and machine learning applications. Traditional data centers rely heavily on grid electricity, which can be expensive and subject to constraints. Olenox’s approach leverages its natural gas assets to generate power on-site, potentially offering a more cost-effective and reliable energy source. This could have implications for the broader tech industry, as companies seek to manage rising energy costs and carbon footprints.
For investors, the acquisition diversifies Olenox’s business lines beyond traditional oil and gas into energy services and technologies. The company, which operates across multiple segments including oil and gas, energy services, and energy technologies, is focused on acquiring, optimizing, and scaling energy-related infrastructure and operating assets across key U.S. markets. The deal may also signal a growing trend of energy companies entering the digital infrastructure space, blurring the lines between traditional energy and technology sectors.
The announcement was made via InvestorWire, a specialized communications platform for press release syndication. For more details, the full press release is available at https://ibn.fm/OcULR. Additional information about Olenox Industries can be found in the company’s newsroom at https://ibn.fm/OLOX.
