Olenox Industries Faces Financial Struggles Amid Capital Deficit
Olenox Industries, an energy company, acquired Bitcoin miner CS Digital Ventures in May. In July, it reported preliminary production of 15.13 BTC against its June 30 balance sheet.
The balance sheet showed $1.21 million of cash and $26.26 million of current liabilities. However, the output had a gross value of about $1.16 million at the Aug. 21 Bitcoin spot price of $76,371.25.
Olenox recorded 1.02 EH/s of average operational hashrate, equal to 64% of the fleet's economic capacity. The company cited summer heat, low-power-mode operation and normal equipment availability as reasons for this figure.
The Aug. 19 quarterly filing put Olenox's production in sharper relief. It had a working-capital deficit of about $22.9 million, with current liabilities totaling $26.26 million. This raised substantial doubt about its ability to continue as a going concern, according to the company.