Olenox, CS Digital to Target $0.02/kWh Off-Grid Mining

Olenox agreed to merge with CS Digital Ventures in a $55 million all-share transaction announced April 26, 2026. The deal values CS Digital at $55 million and will close in multiple tranches. Olenox is listed on Nasdaq and provides oil and gas energy services and related technologies; CS Digital offers custom bitcoin mining and AI solutions.

The combined company will pursue off-grid bitcoin mining and AI data centers sited close to power generation, aiming for power costs near $0.02 per kilowatt-hour in select locations. Bernardo Schucman described the plan as part of what he called “the third era of Bitcoin mining” and added: “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, where, under certain conditions, it may be possible to generate and utilize power at costs approaching $0.02 per kWh.” He said the merger is intended to pursue that opportunity and build a platform to scale off-grid mining.

The companies will target sites where generation is curtailed or where there is no transmission infrastructure to carry power to the grid. Locating compute at or near generation points can allow use of otherwise unused output and avoid transmission charges, lowering the effective power cost for power-intensive tasks such as bitcoin mining and AI model training.

Olenox will focus on integrating generation assets and energy-management tools. CS Digital will supply mining hardware deployment, operations and AI services. The merged entity plans to develop modular or mobile data center facilities that can be placed near generation assets.

Olenox said the $55 million consideration will be paid in shares and released over several closings. The companies expect the combination to create scale for off-grid projects and align energy generation with compute deployment under one corporate structure.

Interest in on-site and mobile mining solutions has grown in Brazil and other markets, with investors and energy firms backing projects that place compute capacity at generation locations to use curtailed or stranded power. Both companies noted that achieving a $0.02 per kWh outcome will depend on local resource availability, permitting and deployment timelines.