Data Storage Corporation Shares Rise 34.9% as CloudFirst Sale Announced.

Data Storage Corporation's shares jumped 34.9% in pre-market trading after announcing plans to sell its subsidiary, CloudFirst, and initiate a share buyback. Other gainers include Graphjet Technology, Nuwellis, GameSquare Holdings, and Incannex Healthcare, while losers include Soluna Holdings, Cyclacel Pharmaceuticals, PicoCELA Inc., and Kairos Pharma.

Data Storage Corporation (DTST) saw its shares rise by 34.9% in pre-market trading following the announcement of its plans to sell its subsidiary, CloudFirst Technologies Corporation, and initiate a share buyback. The company entered into a definitive agreement to sell CloudFirst to Performive, a cloud infrastructure provider backed by Renovus Capital Partners [1].

Under the terms of the agreement, CloudFirst will continue to operate under its established brand, with its leadership team and support personnel remaining intact. The transaction, subject to shareholder approval at the September 10, 2025 annual meeting, is expected to accelerate CloudFirst’s growth in a private setting [1].

Following the sale, DTST plans to use the proceeds from the transaction to repurchase up to 85% of its outstanding shares. The company will retain its public listing and continue operating Nexxis Inc., its telecommunications division. Remaining funds will be used to pursue strategic acquisitions in high-growth sectors such as AI-enabled SaaS, cybersecurity, and healthcare automation [1].

Chuck Piluso, CEO of Data Storage Corporation, commented, “This agreement highlights the long-term value CloudFirst has created and reflects confidence in the future. While the transaction remains subject to shareholder approval, operations at CloudFirst remain unchanged, with no changes to structure or leadership. The current teams remain fully committed to delivering the high standards our clients expect and, in fact, over the past 30 days we have added staff. With the added scale and strategic backing from this transaction, we expect CloudFirst to be well-positioned for continued growth, while preserving the identity and strengths that have driven its success to date” [1].

Other notable gains in the pre-market session included Graphjet Technology, Nuwellis, GameSquare Holdings, and Incannex Healthcare. Conversely, Soluna Holdings, Cyclacel Pharmaceuticals, PicoCELA Inc., and Kairos Pharma were among the losers [2].

References:
[1] https://www.stocktitan.net/news/DTST/cloud-first-to-join-performive-in-strategic-growth-2j9593ch4n2y.html
[2] Market data from pre-market trading on July 2, 2025.