Key Takeaways:
Olenox Industries will acquire Bitcoin mining platform CS Digital Ventures in an all-stock deal worth up to $50 million, combining Olenox’s energy platform with CS Digital’s mining expertise to target power costs below $0.02 per kilowatt-hour.
"This merger represents a strategic step in Olenox’s evolution as an energy-led infrastructure company," said Mike McLaren, Chairman and Chief Executive Officer of Olenox. "We believe we are creating a differentiated platform positioned to compete in the next phase of digital infrastructure growth, spanning both Bitcoin mining and AI-oriented infrastructure."
Under the non-binding letter of intent, CS Digital equity holders will receive $30 million in Olenox preferred shares at closing, with two additional $10 million tranches tied to revenue and EBITDA milestones. CS Digital contributes 2.1 exahash per second (EH/s) of mining capacity, along with a projected $20.6 million in 2025 revenue and $6.2 million in EBITDA.
The deal positions the new entity to capitalize on the growing demand for low-cost power in both Bitcoin mining and AI, leveraging stranded energy assets to create a structural cost advantage. The move signals a strategic shift toward vertically integrated, off-grid operations as a key competitive differentiator in the capital-intensive mining sector.
The merger unites Olenox's access to energy resources with the proven operational capabilities of CS Digital, led by industry pioneer Bernardo Schucman. Schucman, who has been credited with mining over 50,000 BTC throughout his career, will lead the combined platform's mining vision.
"I believe 2026 may mark the beginning of a new phase: the large-scale development of off-grid data centers built closer to the point of energy generation," said Schucman, who will serve as CEO of the CS Digital unit. He described a "third era" of Bitcoin mining where power could be generated and used for as low as $0.02/kWh, a significant drop from the typical $0.05/kWh to $0.09/kWh rates seen in previous large-scale operations.
The transaction is structured as a 100% share-for-share combination. In addition to the performance-based payments, Schucman will receive 900,000 shares of Olenox common stock for his role in assessing the integration of natural gas resources for data center operations.
The combined company aims to address a critical bottleneck for both digital asset miners and high-density compute customers: access to cheap, reliable, and rapidly deployable power. By moving operations "off-grid," the firm can potentially avoid transmission costs and grid instability, monetizing stranded energy sources that would otherwise be uneconomical. This strategy positions Olenox to compete not only with public Bitcoin miners like CleanSpark and Marathon Digital but also to offer infrastructure solutions to the power-hungry AI sector.
This article is for informational purposes only and does not constitute investment advice.
