Olenox Industries Inc. (OLOX) shares surged 61.79% to $7.96 in after-hours trading on Thursday, after the company announced the closing of its acquisition of energy-intensive data center and digital infrastructure company CS Digital Ventures, LLC.

Structural Cost Advantage In AI Infrastructure

The $30 million deal includes $14 million in newly issued Series D Preferred Stock and a $16 million unsecured promissory note. It combines Olenox's upstream natural gas assets and proprietary processing technology with CS Digital's 35 MW of installed capacity, along with $20.6 million in 2025 revenue and $6.2 million in 2025 EBITDA.

The transaction originated from a non-binding letter of intent signed in April, initially valued at up to $50 million as an all-stock merger.

According to the Securities and Exchange Commission filing, the combined platform targets all-in power costs below $0.02 per kWh for off-grid, gas-powered data centers.

“We believe we are creating a platform with the technical and commercial depth to serve a broad range of energy-intensive compute customers,” said Chairman and CEO Mike McLaren, adding that “energy, not real estate, will be the binding constraint.”

What You Should Know

CS Digital was co-founded by Bernardo Schucman, who previously co-founded ATL Data Centers, which merged into CleanSpark (CLSK) in December 2020. He will continue as CEO of CS Digital within the combined entity.

CS Digital’s sellers also received warrants for 1.5 million OLOX shares and are eligible for up to $20 million in additional Series D Preferred Stock, tied to post-closing revenue and EBITDA milestones.

Trading Metrics, Technical Analysis

Olenox has a market capitalization of $5.04 million, with a 52-week high of $21.90 and a 52-week low of $4.10.

The Relative Strength Index (RSI) of OLOX stands at 39.67.

Over the past 12 months, the stock of the energy and modular infrastructure company has dropped 99.39%.

OLOX is currently positioned close to its annual low.

Price Action: According to market data, the small-cap stock closed the regular session at $4.92, up 0.61%.

Market data indicates that OLOX has a negative price trend across all time frames.