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CONROE, Texas - Safe & Green Holdings Corp. (NASDAQ:SGBX) has completed its exit from the modular home construction business and is pivoting toward containerized energy systems, the company announced Thursday in a shareholder letter from CEO Michael McLaren.
The company formally exited the modular home construction sector last month, concluding all outstanding projects. According to the announcement, this strategic shift comes approximately one year after Olenox/NAHD assumed leadership at Safe & Green.
While discontinuing residential modular construction, the company will maintain its containerized construction capabilities, which it plans to repurpose for energy applications. Safe & Green holds a license to use recycled shipping containers for construction projects.
The company's new strategy focuses on developing containerized generators, modular data centers, bitcoin mining units, and containerized micro-refineries. This approach aims to create a vertically integrated energy model that spans from power generation to data processing and refined products.
"Our vision draws from the principle that value increases through both horizontal and vertical integration," McLaren stated in the letter to shareholders. He added that the company is positioning itself as a "fully integrated, technology-enabled, value-added energy producer with controlled manufacturing capabilities." The strategic realignment comes as SGBX faces profitability challenges, with a gross profit margin of -63.44% and EBITDA of -$9.59 million in the last twelve months. InvestingPro subscribers can access 17 additional ProTips and comprehensive financial analysis to better evaluate the potential impact of this strategic pivot.
The announcement indicates that while Safe & Green's revenue primarily comes from oil and gas sales, the company is working to develop technologies that reduce production costs and lower its carbon footprint.
The information was shared in a company press release containing forward-looking statements about Safe & Green's business strategy and future operations.
In other recent news, Safe & Green Holdings Corp. has been actively advancing its technological and energy initiatives. The company, along with its subsidiary Olenox Corp, reiterated the importance of their Open Collaborative Framework partnership with OneQode. This announcement follows a global outage of Amazon Web Services, which underscored the vulnerabilities in cloud infrastructure systems. Additionally, Olenox Corp has started reviewing drilling sites on its current oil and gas leases, with plans to complete a drilling project in the fourth quarter of 2025.
Furthermore, Safe & Green Holdings Corp. announced the completion of Phase 1 of its intelligent wellsite monitoring system. Developed through Olenox Corp, the AI-powered system uses a proprietary algorithm to enhance oil production by dynamically adjusting pumpjack operations. This system leverages Machfu gateway technology to provide real-time, bi-directional monitoring and control. These developments highlight Safe & Green Holdings Corp.'s commitment to innovation in digital infrastructure and energy production.
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