Data Storage Launches Sovereign AI Solutions After $40M Sale and $29.3M Buyback
DTST•Data Storage Corporation sold its cloud solutions business for $40 million in FY2025 and used proceeds to repurchase $29.3 million of common stock, reducing shares by 72% to 2.17 million and eliminating long-term debt. It launched Sovereign AI Solutions, a subsidiary building an AI Continuity Control Plane for healthcare, financial services and insurance.
1. Strategic Sale and Share Buyback
Data Storage Corporation completed the $40 million sale of its cloud solutions business in fiscal 2025 and deployed a portion of the proceeds to repurchase $29.3 million of common stock, cutting shares outstanding by approximately 72% to 2.17 million and eliminating long-term debt.
2. Formation of Sovereign AI Solutions
The company established Sovereign AI Solutions as a wholly owned subsidiary to develop a proprietary AI Continuity Control Plane designed to support recovery, validation and compliance for sovereign AI and AI Factory installations in regulated industries.
3. Market Opportunity and Competitive Position
With industries embedding AI in mission-critical workflows, Data Storage identifies a structural gap in compliance-driven AI recovery and validation; preliminary analysis suggests a multibillion-dollar addressable market, and no similar purpose-built platform currently targets this niche.
4. Financial Strength and Outlook
Data Storage maintains a debt-free balance sheet with substantial working capital and a stable Nexxis operating base; the firm plans to advance its platform toward initial client engagements, while remaining open to partnerships, strategic investments and M&A opportunities.
