Olenox Industries Inc. Issues First Monthly Bitcoin Production Update After CS Digital Acquisition
CONROE, Texas (June 2, 2026) – Olenox Industries Inc. (NASDAQ: OLOX), a vertically integrated U.S. energy company, has released its first operating update following the landmark acquisition of CS Digital Ventures, LLC, completed on May 28, 2026. This report is notably price-sensitive as it marks the beginning of Olenox’s transformation into a combined energy-led digital infrastructure platform, with significant implications for future growth, operational strategy, and shareholder value.
Key Points from the May 2026 Bitcoin Production Report
- Bitcoin Production: Approximately 18.6 BTC mined and credited to Olenox’s mining pool accounts for the period May 1–31, 2026.
- Operational Hashrate: The company achieved an average operational hashrate of about 1.30 EH/s across its mining pool accounts.
- Fleet Utilization: Realized hashrate was approximately 81% of the fleet’s economic capacity, reflecting planned summer curtailment, low-power-mode (LPM) operation, and normal equipment availability.
- Installed Mining Fleet: 9,584 S21-class ASIC miners, representing roughly 35 MW of installed capacity (2.19 EH/s nameplate) at a blended hardware efficiency of 16 J/TH.
- Production Figures: All figures are preliminary and unaudited, subject to final operational and financial review. Production is reported net of mining-pool fees and before settlement of hosting profit-share amounts.
Profit-Share Arrangements & Operating Costs
A majority of Olenox’s mining fleet operates at third-party hosting facilities under profit-share arrangements. These are settled either at the mining-pool level or through monthly invoices covering power, management fees, and profit-share components. Notably, production figures reported are before deduction of hosting costs for the portion settled by monthly invoice – these costs will be recognized as operating expenses and were not finalized at the time of this release. Power costs are borne by Olenox in proportion to the economic output it retains.
Seasonal Operations – Impact on Production
May production was affected by deliberate, weather-driven curtailment at Olenox’s Texas hosting site. During high ambient heat periods, the company curtails or operates in LPM to protect hardware, a standard practice among Texas-based miners. Internal testing suggests LPM maintains miner efficiency and reduces hardware failure risk, but results in temporarily lower hashrate and Bitcoin production during summer months. Investors should expect monthly production to vary with seasonal temperatures, curtailment, and network conditions.
Management Commentary – Strategic Outlook
Bernardo Schucman, CEO of CS Digital and head of Olenox’s data center strategy, underscored the disciplined operations and focus on converting Olenox’s natural gas into compute at the point of generation. He stated, “This first report is a baseline. The opportunity ahead of us is to scale it.”
Mike McLaren, Chairman and CEO of Olenox, emphasized that the acquisition marks the start of a new phase, with immediate operational generation. He assured stakeholders that the company will continue to keep the market informed as they integrate Olenox’s energy assets with CS Digital’s operational capabilities.
Recap of the Completed CS Digital Acquisition
- Acquisition Date: May 28, 2026
- Consideration: US\$30 million upfront — US\$14 million in newly issued Series D Preferred Stock and a US\$16 million unsecured promissory note (Seller Note).
- Equity Incentives: Warrants to acquire 1,500,000 shares of Olenox common stock, in three tranches (exercise prices: \$5.00, \$7.00, \$9.00/share).
- Earnout Provision: Up to an additional US\$20 million in Series D Preferred Stock upon achieving post-closing revenue and EBITDA milestones.
- Nasdaq Compliance: Series D Preferred Stock and Warrants are not convertible/exercisable prior to stockholder approval, which Olenox intends to seek.
- Combined Platform Thesis: Olenox believes that operators who control low-cost, reliable, and rapidly deployable power at the point of generation are best positioned for the next phase of digital infrastructure.
- Strategic Target: Development and operation of off-grid, gas-powered facilities targeting all-in power costs of less than \$0.02 per kWh.
- CS Digital Contribution: ~35 MW installed power, \$20.6 million 2025 revenue, \$6.2 million 2025 EBITDA.
Company Profiles
Olenox Industries Inc.
A vertically integrated U.S. energy company operating in oil, gas, energy services, and technologies, including the proprietary Olenox process. Olenox’s strategic focus is on bringing low-cost natural gas to high-value end uses such as digital infrastructure and next-gen compute.
CS Digital Ventures, LLC
CS Digital is a digital infrastructure specialist, focused on high-density and AI-oriented data centers. Co-founded by Bernardo Schucman, Shanti Cillo, Roberto Santacoce, and Federico Sader, the team has deep expertise in energy-intensive data center deployment and institutional-scale operations.
Forward-Looking Statements – Risks & Uncertainties
This release contains forward-looking statements regarding monthly Bitcoin production, future updates, benefits of the CS Digital acquisition, conversion/exercise of Series D Preferred Stock and Warrants, off-grid gas-powered digital infrastructure, targeted power costs, and future business performance. Risks include Bitcoin price volatility, integration challenges, Seller Note servicing, stockholder approval, milestone achievement, commodity price fluctuations, hosting arrangements, regulatory developments, and other risks detailed in Olenox’s SEC filings. Investors are cautioned not to place undue reliance on these statements.
Investor and Media Contacts
Olenox Industries Inc. | Investor Relations
[email protected]
Disclaimer: This article is for informational purposes only and does not constitute investment advice. All forward-looking statements are subject to risks and uncertainties. Investors should review official company filings and consult professional advisors before making investment decisions.
