Innovation Beverage Group Provides Update on Merger with BlockFuel Energy and Production Restart to Advance Dual Revenue Model Spanning Energy and Digital Asset Mining
Rhea-AI Summary
Innovation Beverage Group (Nasdaq: IBG) announced an update on its proposed merger with BlockFuel Energy, targeting closing in Q1 2026 subject to customary approvals. Ten wells are back in production with seven more expected by month-end. BFE expects first oil and gas sales in February 2026 and initial revenues before March 31, 2026. The combined plan pairs conventional hydrocarbon sales with onsite gas-to-power digital mining, and a Letter of Intent would add approximately 4,000 contiguous acres to the portfolio, aiming to scale gas volumes and infrastructure.
Positive
- Ten wells restarted, increasing active production immediately
- Additional seven wells expected back in production by month-end
- First oil and gas sales expected in February 2026, with revenues before March 31, 2026
- LOI to acquire ~4,000 contiguous acres to expand gas volumes
Negative
- Merger completion remains subject to customary approvals and closing conditions
- Initial revenues and production increases are projected but not yet realized
News Market Reaction
On the day this news was published, IBG declined NaN%, reflecting a moderate negative market reaction. Argus tracked a peak move of +13.5% during that session. Argus tracked a trough of -5.5% from its starting point during tracking. Our momentum scanner triggered 11 alerts that day, indicating notable trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
IBG fell 6.97% while peers were mixed: SBEV -10.5%, BLNE -3.67%, YHC +2.38%, WVVI +0.38%, WVVIP +0.16%, suggesting stock-specific dynamics around the merger update.
Previous Acquisition Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 20 | Merger progress update | Positive | -9.1% | Detailed progress on BlockFuel acquisition, assets, and financing structure. |
| Oct 15 | Definitive merger deal | Positive | +25.2% | Definitive BlockFuel merger terms and expected Nasdaq listing under FUEL. |
| Sep 23 | Merger LOI signed | Positive | +105.1% | LOI for reverse triangular merger with BlockFuel and projected valuation range. |
Acquisition-related headlines around the BlockFuel deal have produced large but mixed reactions, with two strong rallies and one notable selloff.
Recent history for IBG has been dominated by the proposed merger with BlockFuel Energy. An initial LOI on Sep 23, 2025 and the definitive agreement on Oct 15, 2025 triggered gains of 105.07% and 25.16%, respectively. A later acquisition-themed business update on Jan 20, 2026 saw a contrasting -9.12% move. Today’s update continues that sequence of integration and operational progress on wells, gas production, and digital mining plans.
Historical Comparison
Past acquisition headlines tied to BlockFuel drove an average move of 40.37%, highlighting how transformative investors have viewed this transaction relative to IBG’s legacy beverage profile.
Acquisition-tagged events show a clear progression: initial LOI, then a definitive merger agreement, followed by ongoing operational and financing updates as the BlockFuel transaction advances.
Regulatory & Risk Context
IBG has an effective Form F-3 shelf filed on 2025-12-29 to offer up to $10,000,000 in securities. A 424B5 prospectus supports an at-the-market equity program of up to $2,500,000, giving the company flexibility to issue additional shares, which could dilute existing holders if fully utilized.
Market Pulse Summary
This announcement advances IBG’s shift toward a dual energy and digital-mining model, noting 10 wells already back online, 7 more targeted, and a planned 4,000-acre expansion under LOI. It follows earlier BlockFuel merger milestones and sits against a backdrop of active capital tools, including a $10,000,000 shelf and a $2,500,000 ATM. Monitoring production ramp, timing of first oil and gas sales, and progress on onsite digital mining build-out will be key.
Key Terms
digital mining infrastructure technical
bitcoin mining technical
hydrocarbons technical
wellhead technical
AI-generated analysis. Not financial advice.
Onsite Natural Gas–Powered Digital Mining Strategy Positions Combined Group for Capital-Efficient, Scalable Cash Flow Generation
SYDNEY, Feb. 11, 2026 (GLOBE NEWSWIRE) -- Innovation Beverage Group Ltd (“IBG” or the “Company”) (Nasdaq: IBG), an innovative developer, manufacturer, and marketer of a growing beverage portfolio of 60 formulations across 13 alcoholic and non-alcoholic brands, today provided an update regarding its proposed merger with BlockFuel Energy Inc., a Texas corporation (“BFE”), including operational, financial, and strategic milestones that position the combined transaction parties as a capital-efficient energy producer with a differentiated digital infrastructure growth strategy.
The companies remain on track to complete the merger in the first quarter of 2026, subject to customary approvals and closing conditions. Integration planning continues, with a clear focus on building a vertically integrated platform that monetizes hydrocarbons through both conventional sales channels and potential digital energy applications.
Ten wells are currently back in production, with an additional seven wells expected to be returned to production by month-end, materially increasing active production and available gas volumes across the portfolio.
BFE expects to complete its first oil and gas sales in February 2026, with initial revenues anticipated before the end of the first quarter ended March 31, 2026. These initial oil and gas revenues are expected to provide near-term cash-flow visibility following completion of the merger.
Digital Energy and Mining Strategy
In parallel with production restarts, planning is advancing for the potential deployment of digital mining infrastructure powered directly by natural gas produced onsite. Initial planning takes into consideration modular, wellhead-adjacent generation and mining deployments, allowing capacity to scale in-line with gas availability and capital deployment.
Based on preliminary engineering and comparable field deployments, BFE management believes onsite gas-to-power costs may be meaningfully below grid-based power pricing, while avoiding transportation, processing, and third-party power costs. Even modest allocations of produced gas to digital infrastructure may support incremental margins per unit of gas, while preserving flexibility to sell gas into traditional markets.
Daniel Lanskey, Chief Executive Officer of BlockFuel Energy, commented, “We view Bitcoin mining not as speculation, but as energy infrastructure. At its core, our strategy is about converting underutilized natural gas at the site into productive, revenue-generating capacity. By collocating modular power and mining directly at the wellhead, we believe the combined company can deploy capital efficiently, operate at a low effective energy cost, and scale output in-line with production. This approach has the potential to improve overall project economics while giving shareholders disciplined exposure to digital asset upside.”
The integrated energy-and-mining model is expected to enhance resilience across commodity cycles and provide a flexible demand sink for gas, while creating incremental cash flow per well without compromising conventional production strategy.
Portfolio Expansion and Scale
Further strengthening the asset base, BFE has executed a Letter of Intent with a previous vendor to acquire additional nearby producing oil fields, adding approximately 4,000 contiguous acres to its portfolio. The proposed acquisition is expected to both expand scale and improve operating efficiencies, increasing gas volumes available for both traditional sales and digital energy initiatives.
Management of the companies believe these milestones demonstrate disciplined execution across production, capital formation, and infrastructure planning, while reinforcing the strategic rationale for the IBG-BFE merger.
Upon completion, the combined group is expected to emerge as a small-cap, integrated energy company with near-term production, diversified revenue streams, and a scalable gas-to-digital infrastructure platform positioned to deliver long-term shareholder value.
Further updates will be provided as the merger, financing, production restart, digital mining deployment, and acquisition initiatives continue to progress toward completion.
About Innovation Beverage Group Ltd
Innovation Beverage Group is a developer, manufacturer, marketer, exporter, and retailer of a growing beverage portfolio of 60 formulations across 13 alcoholic and non-alcoholic brands for which it owns exclusive manufacturing rights. Focused on premium and super premium brands and market categories where it can disrupt age old brands, IBG’s brands include Australian Bitters, BITTERTALES, Drummerboy Spirits, Twisted Shaker, and more. IBG’s most successful brand to date is Australian Bitters, which is a well-established and favored bitters brand in Australia. Established in 2018, IBG’s headquarters, manufacturing and flavor innovation center are located in Sydney, Australia with a U.S. sales office located in California. For more information visit: https://www.innovationbev.com/.
About BlockFuel Energy
BlockFuel Energy is involved in the acquisition, exploration and development of proven oil fields onshore in North America. By turning natural gas at the source, including stranded and flared gas, into a potent resource for the digital era, BlockFuel Energy intends to redefine the energy industry. BlockFuel Energy combines state-of-the-art power generation with oil and gas exploration to power bitcoin mining operations and high-performance data centers. Our vertically integrated concept allows us to use co-location and modular power generation techniques to optimize efficiency and investment returns. Our cutting-edge solutions for energy optimization and extraction will enable us to transform underdeveloped resources into high-margin, scalable, and sustainable revenue streams. For more information visit: https://blockfuelenergy.com/.
Forward Looking Statement
This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding the proposed merger between IBG and BlockFuel Energy, anticipated operational milestones, expected production levels, anticipated oil and gas sales, planned financing activities, potential deployment of digital infrastructure, expected economic benefits of such activities, and the proposed acquisition of additional oil field assets.
Forward-looking statements are typically identified by words such as “expects,” “anticipates,” “plans,” “projects,” “intends,” “believes,” “may,” “will,” “could,” “should,” or similar expressions. These statements are based on current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied. These risks include, among others, the ability of the parties to execute definitive transaction documents, satisfy closing conditions, obtain regulatory and stockholder approvals, commodity price volatility, operational risks, financing risks, regulatory developments relating to digital assets, and other risks described in IBG’s filings with the U.S. Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these forward-looking statements. Neither IBG nor BFE undertakes any obligation to update such statements except as required by law.
Contact:
Innovation Beverage Group Limited
Sahil Beri
CEO
sahil@innovationbev.com
www.innovationbev.com
BlockFuel Energy Inc.
Daniel Lanskey
President and CEO
dan.lanskey@blockfuelenergy.com
www.blockfuelenergy.com
Investor Relations:
KCSA Strategic Communications
Phil Carlson, Managing Director
BlockFuel@KCSA.com
FAQ
When is the IBG and BlockFuel Energy merger expected to close?
What production milestones did IBG and BlockFuel report for February 2026?
When will BlockFuel Energy begin selling oil and gas after the merger with IBG?
How will IBG-BFE use natural gas for digital mining and energy?
What asset expansion did IBG and BlockFuel announce in the update?
