Duos Sells GPUaaS Unit to Axe Compute for $42.9M, Sheds $98.1M Debt
DUOT sits 51% above its 52-week low of $6.17.
Summary
Duos Technologies completed the sale of its GPU-as-a-Service entity to Axe Compute for $42.9 million, payable over 60 months. Axe repaid $87.8 million of SPV debt and will pay $715,000 monthly for 60 months, with repayment accelerated if Axe obtains financing secured by the cluster within 12 months. The deal removes $98.1 million in prospective equipment financing and shifts Duos to a pure-play colocation landlord model. The Columbus customer continues under a revised five-year agreement expected to increase revenue. This follows the August 2026 hosting agreement with Axe Compute for 55 MW and the July 2026 hyperscaler colocation deal. The transaction sharpens Duos' focus on modular colocation sites and frees capital for expansion. Management reaffirmed full-year 2026 revenue above $50 million and positive adjusted EBITDA.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — The 8-K states Axe repaid $87.8 million of SPV debt and will pay $715,000 monthly for 60 months, with repayment accelerated if Axe obtains financing secured by the cluster within 12 months.
At the time of this announcement, DUOT was trading at $9.32 on NASDAQ in the Technology sector, with a market capitalization of approximately $286.7M. The 52-week trading range was $6.17 to $15.28. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: GlobeNewswire.