Data Storage Sells CloudFirst Business for $40 Million

The latest update is out from Data Storage ( (DTST) ).

On September 11, 2025, Data Storage Corporation completed the sale of its CloudFirst business to Performive, generating approximately $40 million in gross proceeds, with estimated net proceeds of $24 million after fees and adjustments. The company plans to use these proceeds to support strategic investments and acquisitions in technology sectors such as AI-enabled software, GPU technologies, and cybersecurity, while continuing to operate its telecommunications subsidiary, Nexxis, Inc. The transaction, approved by shareholders, positions Data Storage Corporation to pursue growth opportunities and enhance shareholder value.

The most recent analyst rating on (DTST) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Data Storage stock, see the DTST Stock Forecast page.

Spark’s Take on DTST Stock

According to Spark, TipRanks’ AI Analyst, DTST is a Neutral.

Data Storage Corporation’s stock score is primarily influenced by its strong revenue growth and strategic initiatives, despite challenges in profitability and valuation. The proposed sale of CloudFirst offers a potential reset for shareholder value, but the company’s dependency on CloudFirst revenue and increased net loss are significant risks.

To see Spark’s full report on DTST stock, click here.

More about Data Storage

Data Storage Corporation, listed on Nasdaq as DTST, focuses on investing in and supporting businesses in GPU Infrastructure-as-a-Service (IaaS), AI-driven software applications, cybersecurity, and voice/data telecommunications. The company’s goal is to build recurring revenue streams while maintaining operational discipline.

Average Trading Volume: 359,924

Technical Sentiment Signal: Buy

Current Market Cap: $33.92M

See more data about DTST stock on TipRanks’ Stock Analysis page.