Data Storage Corporation (Nasdaq: DTST) announced on October 20, 2025 that it has completed the repurchase of 858,750 shares of its July 2021 warrants for a total of $2,049,388. The transaction was executed under the fundamental transaction provision of the warrants, which was triggered by the company’s sale of its CloudFirst subsidiary on September 11, 2025.
Following the repurchase, only 172,500 warrants remain outstanding, effectively eliminating the majority of potential dilution from the July 2021 warrant issue. The move reduces the number of outstanding securities and simplifies the company’s capital structure, making it easier for investors to assess the equity base.
The repurchase was directly linked to the earlier divestiture of the CloudFirst business, a transaction that closed on September 11, 2025. By buying back the warrants, DTST is aligning its capital structure with its new post‑divestiture focus and preparing for future capital allocation decisions.
For investors, the repurchase signals a commitment to returning value and streamlining equity. Removing a large portion of the warrant pool reduces potential dilution, improves earnings per share calculations, and positions the company for more efficient capital deployment in its remaining operations.
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