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  • Data Storage (DTST) Stock Gains Pre-Market Momentum On Divestiture News

    Data Storage (DTST) Stock Gains Pre-Market Momentum On Divestiture News

    Data Storage Corporation (NASDAQ: DTST) shares jumped 29.55% in pre-market activity to hit $4.34 at the latest check. The large jump in stock price followed the company’s announcement of a formal asset sale deal with its wholly owned subsidiary, CloudFirst Technologies Corporation.

    The deal, signed on July 11, 2025, intends to support CloudFirst’s future growth under new ownership while enabling Data Storage to pursue larger strategic options that boost shareholder value.

    CloudFirst to Join Performive

    CloudFirst will be bought by Performive, a cloud infrastructure services company sponsored by private equity firm Renovus Capital Partners. The CloudFirst brand, together with its leadership and support staff, will remain intact post-transaction, assuring operational continuity.

    Data Storage emphasized that CloudFirst will maintain its established service identity and customer relationships throughout and beyond the transition period.

    Shareholder Vote and Future Strategy

    The completion of the transaction is contingent upon customary closing conditions, including shareholder approval during Data Storage’s annual meeting scheduled for September 10, 2025.

    If the purchase is concluded, Data Storage will keep its NASDAQ listing and continue operations of Nexxis Inc., its telecommunications and data services segment. In conjunction with the deal’s revenues and existing cash reserves, the business expects to conduct a tender offer to buy up to 85% of its outstanding shares.

    Reinvesting in High-Growth Sectors

    Following the tender offer, the business expects to employ leftover money for strategic acquisitions, targeting high-growth areas such as AI-powered SaaS platforms, cybersecurity solutions, and healthcare automation.

    According to business leadership, the acquisition reinforces CloudFirst’s long-term value and opens the possibility for Data Storage to reorient its resources toward more meaningful development possibilities.

    A Win-Win for Growth

    While operations at CloudFirst remain steady, the shift to private ownership is meant to facilitate additional expansion. Meanwhile, Data Storage Corporation aspires to generate meaningful value to shareholders and reorient its emphasis toward industries with substantial development potential—signaling a crucial transition in its business trajectory.

  • Data Storage Corp. (DTST) Stock Skyrockets Following Promising Closure of Merger with Flagship LLC

    Data Storage Corp. (DTST) Stock Skyrockets Following Promising Closure of Merger with Flagship LLC

    Data Storage Corp. (DTST) stock prices surged 24.40% on July 6th, 2021, bringing the price per share up to USD$7.29. Subsequent premarket fluctuations saw the stock skyrocket by 75.45%, bringing it up to USD$12.79.

    Merger with Flagship

    June 3rd, 2021 saw the company announce the merger of its wholly owned subsidiary, Data Storage FL, with Flagship Solutions. Flagship will continue on as the surviving combined entity, with its CEO taking over as the CEO of the combined company. The merger followed shortly after the company was uplisted to Nasdaq, with the transaction substantially expanding the services offered, thus proving highly synergetic with existing IBM operations.

    Details of the Merger

    The combined company is poised to lead the industry as a one-stop provider of multi-cloud IT solutions, which are cross-sold across relevant enterprise and middle-market customers. With more and more customers migrating to the IBM cloud, the merger came at an opportune time, with further growth expected in the market. This assumption is based on the fact that it is only recently that the IBM on-premise server market began transitioning to the cloud. The partnership will provide access to additional resources and infrastructure that will accelerate the growth of the combined company.

    Public Offering

    May 18th had seen the company announce the closing of its underwritten public offering of shares of its common stock. The offering will see the sale of 1.6 million units to the public, at a price of USD$6.75 per unit. Each unit will consist of one share of common stock and one warrant, which can be used to purchase one share of common stock, at an exercise price of USD$7.425. The shares and warrants comprising each unit were immediately separable and were issued separately, having begun trading on the Nasdaq Capital Market on May 14th 2021, under the tickers DTST and DTSTW.

    Allocation of Capital

    The company anticipates the generation of gross proceeds in the amount of USD$10.8 million. An additional USD$2,400 were generated from the exercising of the allowable overallotment option that saw the purchase of an additional 240,000 warrants at a price per warrant of USD$0.01. The funds raised are expected to be allocated towards the expansion of the company’s sales force, marketing and business development, potential acquisitions, as well as the payment of dividends.

    Future Outlook for DTST

    With the final completion of the business combination having occurred on July 6th 2021, in conjunction with the healthy liquidity position, soaring stock prices reflect the untapped potential of the combined company. Investors are hopeful for continued gains over the long-term.