Data Storage Corporation Announces Final Results of Tender Offer

Rhea-AI Summary

Data Storage (Nasdaq: DTST) announced final results of its tender offer completed Jan 12, 2026. The company accepted 5,625,129 shares at $5.20 per share for an aggregate cost of $29,250,970.80. The purchased shares represent approximately 72.0% of shares outstanding as of Dec 8, 2025. After payment, Data Storage has 2,167,138 shares of common stock outstanding and retains over $10 million in cash to pursue a disciplined M&A strategy focused on AI, GPU environments, cybersecurity, and telecommunications.

Positive

• Repurchased 5,625,129 shares at $5.20 per share
• Retired approximately 72.0% of shares outstanding
• Maintains over $10 million cash post-transaction

Negative

• Paid $29,250,970.80 in cash for the tender offer
• Outstanding shares reduced to 2,167,138, materially consolidating equity

Key Figures

Target date AUM: $464 billion Target date adoption: 98% Dynamic QDIA adoption: 14% +5 more

8 metrics

Target date AUM $464 billion Target date portfolios managed as of July 31, 2024

Target date adoption 98% Defined contribution recordkeeping clients offering target date products in 2023

Dynamic QDIA adoption 14% DC plan sponsors currently offering dynamic QDIA solutions

Dynamic QDIA interest 51% DC plan sponsors considering or interested in dynamic QDIAs

DTST price change -12.06% Price move in the 24 hours before this news

DTST 52-week range $2.93–$5.4395 Price vs 52-week low/high before this news

DTST vs 52-week high -18.19% Distance from 52-week high pre-news

DTST market cap $37,941,691 Equity value before this news

Market Reality Check

Price: $4.39 Vol: Volume 58,799 vs 20-day a...

normal vol

$4.39 Last Close

Volume Volume 58,799 vs 20-day average 50,422 (relative volume 1.17). normal

Technical Price $4.45 is trading above 200-day MA at $4.21 before this news.

Peers on Argus

DTST fell 12.06% while peers were mixed: VEEA -11.4%, SAIH -8.4%, but CLPS +1.54...

DTST fell 12.06% while peers were mixed: VEEA -11.4%, SAIH -8.4%, but CLPS +1.54%, GLE +4.74%, CYCU +5.69%. This points to a stock-specific move rather than a broad sector trend.

Historical Context

5 past events · Latest: Dec 23 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 23	Tender offer extension	Neutral	-0.4%	Extended tender offer expiration by five days via Schedule TO amendment.
Dec 18	Strategy update	Positive	+0.2%	Outlined 2026 corporate strategy tied to expected tender completion.
Dec 08	Tender offer launch	Positive	+12.2%	Announced cash tender for up to 6.19M shares at $5.20 per share.
Nov 19	Earnings & divestiture	Positive	+5.2%	Reported Q3 2025 and completed CloudFirst sale to fund higher-growth areas.
Nov 18	Call reschedule	Neutral	+3.3%	Rescheduled Q3 2025 business update conference call to Nov 19 at 10 AM ET.

Pattern Detected

Recent news, especially around the tender offer and strategic refocus, has typically seen neutral to positive price reactions, with the initial tender announcement drawing the strongest move.

Recent Company History

Over the last six months, DTST has focused on portfolio reshaping and capital return. On Nov 19, 2025, it reported Q3 2025 results alongside the completed CloudFirst sale, describing this as transformative. On Dec 8, 2025, it announced a cash tender offer for up to 6,192,990 shares at $5.20, funded by CloudFirst sale proceeds. Subsequent updates on the tender timing and a 2026 strategy letter highlighted a pivot toward GPU IaaS, AI, and cybersecurity. The current article follows this tender-offer sequence and broader strategic repositioning.

Market Pulse Summary

This announcement comes after a series of corporate actions for DTST, including the CloudFirst dives...

Analysis

This announcement comes after a series of corporate actions for DTST, including the CloudFirst divestiture and a cash tender offer for up to 6,192,990 shares at $5.20. Historically, such events have driven meaningful moves, notably a 12.22% rise on the tender launch and a 5.17% gain around the divestiture update. Investors may focus on how future communications refine the company’s GPU IaaS, AI, and cybersecurity focus and on any further capital allocation decisions following the tender’s completion.

Key Terms

qualified default investment alternative, 401(k), defined contribution, dc plan sponsors, +3 more

7 terms

qualified default investment alternative regulatory

"PRM can be selected as the Qualified Default Investment Alternative (QDIA) for participants"

A qualified default investment alternative (QDIA) is the default choice a retirement plan uses when an employee doesn’t pick an investment, acting like a pre-set route a GPS chooses when you don’t enter a destination. It matters to investors because the QDIA determines how contributions are invested—how much risk, growth potential, and fees apply—so it shapes how a retirement account can grow over time without the participant making active decisions.

401(k) financial

"uses personal information available through 401(k) recordkeeping data"

A 401(k) is a type of retirement savings plan offered by employers that allows workers to set aside a portion of their paycheck before taxes are taken out. The money saved in a 401(k) can grow over time through investments, helping individuals build funds for their future retirement. It matters to investors because it provides a tax-advantaged way to save and invest for long-term financial security.

defined contribution financial

"14% of Defined Contribution (DC) plan sponsors currently offer dynamic QDIA solutions"

A defined contribution plan is a retirement savings arrangement where the amount put into an employee’s account is fixed by a formula or contribution schedule, but the final payout depends on how the invested money performs. Think of it as a personal savings pot that grows or shrinks with market returns; for investors, it matters because companies offering these plans have more predictable short-term costs but shift long-term retirement risk onto employees, affecting corporate liabilities, cash flow and workforce stability.

dc plan sponsors financial

"14% of Defined Contribution (DC) plan sponsors currently offer dynamic QDIA solutions"

DC plan sponsors are employers or other organizations that set up and oversee defined contribution retirement plans, such as 401(k) or 403(b) accounts, where each worker has an individual investment account funded by contributions. Their choices about plan design, investment options, fees and recordkeepers shape how money is invested and what returns and costs savers experience—think of them as a building manager who chooses the appliances and rules that determine tenants’ monthly bills and comfort.

dynamic qdia financial

"currently offer dynamic QDIA solutions that transition participants"

A dynamic QDIA is a default retirement-plan investment that automatically changes its mix of stocks, bonds and cash over time or in reaction to market moves, rather than holding a fixed allocation. For investors, it matters because if you don’t pick an option, this choice determines your typical risk and potential returns—think of it as a thermostat that adjusts your portfolio’s ‘temperature’ to try to match your age, time to retirement or changing market conditions.

target date solutions financial

"Saving for retirement no longer has to be a choice between target date solutions or personalization"

Investment products that automatically change the mix of stocks, bonds and cash over time to match a specific future date—usually a retirement year—so the portfolio becomes more conservative as that date approaches. They matter to investors because they act like a financial autopilot: instead of constantly rebalancing or guessing how much risk to take, a single product adjusts for you, making long-term saving simpler and reducing the chance of being too risky or too cautious near the target date.

recordkeeping financial

"uses personal information available through 401(k) recordkeeping data"

Recordkeeping is the routine creation, organization and safe storage of a company's financial, transactional and regulatory documents—think of it as the business’s filing cabinet or detailed notebook. It matters to investors because accurate records let you verify a company’s performance, ensure it’s following rules, make comparisons over time, and detect mistakes or misuse of funds, all of which affect trust and the value of an investment.

AI-generated analysis. Not financial advice.

Company Retires Approximately 72% of Outstanding Shares and Maintains Cash to Execute Disciplined, Transformational M&A Strategy

NEW YORK, Jan. 15, 2026 (GLOBE NEWSWIRE) -- Data Storage Corporation (Nasdaq: DTST) (“Data Storage” or the “Company”), today announced the final results of its previously announced tender offer to acquire up to 6,192,990 shares of the Company’s common stock, par value $0.001 per share, at a price of $5.20 per share in cash, less any applicable withholding taxes and without interest. The tender offer expired at 12:00 midnight on January 12, 2026, and was funded entirely through the Company’s cash on hand.

With the completion of the tender offer, Data Storage has streamlined its capital structure while maintaining a strong balance sheet and liquidity to support future strategic initiatives.

Chuck Piluso, Chairman and Chief Executive Officer of Data Storage, commented, “With the tender offer complete, our focus is on execution and the road ahead. With over $10 million in cash on our balance sheet, we believe we are well positioned to pursue a highly disciplined acquisition strategy. We are actively evaluating strategic opportunities that support our growth plan, centered on thoughtful consolidation across technology-enabled services. Our strategy prioritizes businesses with recurring revenue, high margins, established customer bases, and clear paths to scale—particularly in areas such as GPU type environments, AI-driven software applications, cybersecurity, and telecommunications. We believe this approach has the potential to be transformative for the Company over time.”

In accordance with the terms and conditions of the tender offer, based on the final count, Data Storage Corporation accepted for purchase 5,625,129 shares of common stock at a purchase price of $5.20 per share, for an aggregate cost of $29,250,970.80, excluding fees, any excise taxes, and expenses relating to the tender offer. The shares accepted for purchase represent approximately 72.0% of the total number of shares of common stock outstanding as of December 8, 2025. Following payment for the tendered shares, Data Storage Corporation has 2,167,138 shares of common stock outstanding. After completing the tender offer and related payments, the Company retains over $10 million in cash.

For all questions relating to the tender offer, please contact Broadridge Corporate Issuer Solutions, LLC, 51 Mercedes Way, Attn: BCIS IWS, Edgewood, NY 11717, (855) 793-5068, Email: shareholder@broadridge.com

About Data Storage Corporation

Data Storage Corporation (Nasdaq: DTST), through its subsidiary today, Nexxis, Inc., provides Voice over Internet Protocol (“VoIP”)/Unified Communications and dedicated internet connectivity as part of DTST’s one-stop solution set. In the future, DTST plans to invest in and support businesses, including, but not limited to, GPU Infrastructure, AI-driven software applications, cybersecurity, and voice/data telecommunications. The Company’s mission is to build sustainable, recurring revenue streams while maintaining financial discipline and strategic focus. For more information, visit www.dtst.com.

Safe Harbor Provision

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created thereby. Forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to have been correct. These forward-looking statements are based on management’s expectations and assumptions as of the date of this press release and include statements regarding the Company being well positioned to pursue a highly disciplined acquisition strategy; the Company executing its strategy; the Company acquiring and supporting technology-enabled service businesses with high margins, recurring revenue, established customer bases, and clear paths to scale—particularly in areas such as GPU Infrastructure, AI-driven software applications, cybersecurity, and telecommunications; and the approach being transformational for the Company over time. Important factors that could cause actual results to differ materially from current expectations include the Company’s ability to execute its strategy; and the Company’s ability to acquire and support technology-enabled service businesses with high margins, recurring revenue, established customer bases, and clear paths to scale—particularly in areas such as GPU Infrastructure, AI-driven software applications, cybersecurity, and telecommunications. These risks should not be construed as exhaustive and should be read together with the other cautionary statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it was initially made. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or otherwise.

Contact:
Crescendo Communications, LLC
212-671-1020
DTST@crescendo-ir.com

FAQ

How many shares did Data Storage (DTST) repurchase in the Jan 2026 tender offer?

Data Storage accepted 5,625,129 shares for purchase in the tender offer.

What price did Data Storage (DTST) pay per share in the tender offer?

The company paid $5.20 per share in cash, less applicable withholding taxes.

What percentage of outstanding shares did DTST retire in the tender offer?

The shares accepted represent approximately 72.0% of common stock outstanding as of Dec 8, 2025.

How many shares of common stock does Data Storage (DTST) have outstanding after the tender offer?

Following the tender offer and payments, Data Storage has 2,167,138 shares outstanding.

How much cash does Data Storage (DTST) retain after completing the tender offer?

After completing the tender offer and related payments, the company retains over $10 million in cash.