Data Storage CEO eyes LOI in 60 days on M&A plans

Data Storage Corp (DTST) told investors on its second-quarter earnings call that its CEO is aiming to obtain a signed letter of intent (LOI) within 60 days as the company pursues an M&A-related strategic transaction. Management framed the LOI target as a near-term priority for the quarter, describing the schedule as an aggressive effort to move strategic options forward.

On the same call, the company highlighted its balance sheet, saying it has $9.3 million in cash on hand. It also said its shares are trading below the firm’s liquidation value, a comparison management linked to its rationale for exploring strategic transactions.

LOI timeline points to October 13, 2026

Based on the timing described by the company, the 60-day window implies an LOI deadline on or before October 13, 2026. Officials said the push is intended to address the company’s valuation and to evaluate broader alternatives, positioning the LOI as an early milestone in a wider strategic process. However, the company did not disclose whether discussions are already underway or when the process began. It also said it did not have immediate details on market reaction, noting that reaction was pending. Liquidation-value claim cited, but calculation not explained While Data Storage Corp asserted that the stock is trading below liquidation value, it did not provide a supporting calculation during the remarks summarized from the call. The company did not specify which inputs or assumptions were used to arrive at liquidation value, nor did it provide an additional financial breakdown alongside the cash figure.

Data Storage Corp

The company’s statements therefore left key items unresolved for investors seeking to interpret the comparison, including what assets and liabilities were included and how any potential wind-down costs might be treated. The call, as described, did not add further detail on those points.

Deal structure and counterparties remain undisclosed

Officials said the company is pursuing strategic transactions with the stated aim of unlocking shareholder value. Even so, the call did not identify a target buyer, a potential counterparty, or any specific structure being considered.

The company also did not say whether a potential LOI would relate to a sale of the company, an asset-level transaction, a merger, or another type of strategic arrangement. No terms, pricing expectations, or financing framework were provided.

Near-term filings and updates in focus

With management placing emphasis on a 60-day LOI timetable, attention is likely to focus on near-term filings and follow-up statements for any indication of counterparties, process milestones, or transaction terms. The company has not indicated how it would report interim progress, or whether it expects to provide updates before the stated deadline.