Olenox advances 1-5 GW energy-to-compute plan with Texas acquisitions

Olenox Industries reported second-quarter revenue of $2.1 million, up 194 percent year over year, as the vertically integrated energy company accelerates its push into energy-to-compute infrastructure spanning natural gas, power generation and digital assets.

"We believe reliable, competitively priced power is becoming one of the most important constraints facing the expansion of AI infrastructure, data centers, bitcoin mining and other power-intensive applications," Michael McLaren, chairman and chief executive officer at Olenox, said in a shareholder letter.

Total assets rose 78 percent to $64.2 million as of June 30 from $36.0 million at year-end 2025, while stockholders' equity climbed 155 percent to $19.4 million. Following the May acquisition of CS Digital Ventures, mining operations produced roughly 17 bitcoin per month during June and July at an average gross value of approximately $72,000 per bitcoin.

Olenox is evaluating a proposed acquisition of Wildboy Holdings and IPD Industries that could unlock a 1-5 GW generation footprint near the Waha Hub in the Delaware Basin, positioning the company to convert natural gas into behind-the-meter power for high-density computing as data center power demand strains grids nationwide.

The company's strategy centers on transitioning CS Digital's mining operations from third-party hosting to self-hosted facilities powered by behind-the-meter generation, a shift McLaren said could reduce exposure to external hosting and grid-power costs while giving Olenox greater control over its digital-infrastructure operations.

Olenox has engaged an independent engineering firm to evaluate assets tied to the proposed Wildboy and IPD acquisitions, with results expected in the coming weeks. If the transaction closes and technical, commercial, financing and regulatory requirements are satisfied, the company intends to evaluate development of an approximately 20-megawatt bitcoin-mining and hosting facility as a first step toward self-hosting.

Waha Hub assets could anchor phased buildout

The proposed transaction includes IPD's project interests near the Waha Hub outside Pecos, Texas, within the Delaware Basin's Wolfbone trend area. Sellers have identified a potential long-term development range of approximately 1-5 GW, though the estimate remains subject to independent validation, resource availability, engineering, permitting, financing and customer demand.

The assets reportedly include proximity to multiple transmission and midstream systems serving the Waha Hub, customer and utility substations located 1.5 to 2.5 kilometers from certain project tracts, regional fiber routes, and potential access to Qualified Scheduling Entity, Retail Electric Provider and ERCOT market operations.

Waha Hub natural gas has traded at persistent discounts to Henry Hub benchmarks in recent years because of pipeline constraints in the Permian Basin, making the region one of the cheapest gas supplies in the United States. That dynamic has attracted a wave of bitcoin miners and data center developers seeking low-cost power.

Capital discipline and phased execution

McLaren emphasized that the proposed generation potential should not be viewed as committed capacity or a near-term development forecast. Any deployment would depend on successful completion of the acquisition, technical validation, gas availability, site control, permitting, financing, equipment procurement, interconnection requirements and customer demand.

Over the coming year, Olenox intends to continue integrating recently acquired capabilities, advance its applied-intelligence platform across operating sites and evaluate opportunities to expand off-grid and behind-the-meter computing capacity. The company also plans to develop existing energy properties and pursue selected drilling and completion activity, subject to available capital, commodity prices and operating conditions.

Future acquisitions will be evaluated on whether they add a strategically valuable component to the integrated platform, McLaren said. "Our objective is not simply to accumulate assets. It is to connect complementary capabilities across energy, power, infrastructure, compute and intelligence in a manner that can create durable value for shareholders."

The convergence of energy and computing has become one of the most active areas of infrastructure investment, with hyperscalers and independent developers racing to secure power for AI data centers. Olenox's approach of pairing natural gas production with behind-the-meter generation and digital infrastructure puts it in direct competition with a growing field of energy-to-compute developers, including companies like Crusoe Energy and Lancium that have pioneered similar models in the Permian Basin.

This article is for informational purposes only and does not constitute investment advice.