Digerati Technologies, the holding company of cloud service and colocation providers Waiv Cloud and Verve Cloud, has pivoted away from cloud computing.

Announced by the company at the end of June 2025, Digerati has completed the refinancing and debt-for-equity exchange for its former subsidiary Verve Cloud, enabling it to focus on colocation services.

The transaction saw more than $50 million in lender debt converted into Verve Cloud equity, while Digerati exchanged the lender debt for the various assets in Verve Cloud, Inc., that included approximately $29m in annual revenue, equipment, customer and vendor contracts, and other operating agreements.

While Verve Cloud has been dropped, Waiv Cloud Inc, Digerati’s colo business, has been retained. According to the company, it generates around $45,000 in monthly recurring revenue.

Digerati has entered into a Transition Service Agreement with Verve Cloud, Inc. for an initial term of 90 days, for the support of the colocation customers.

Digerati’s board member, Craig K. Clement, said: “Today marks a new beginning for Digerati as we have moved on from the Verve Cloud business model. In return, we have significantly reduced our debt and repositioned ourselves as Waiv Cloud, a client-focused nationwide provider of colocation services. The colocation business represents predictable recurring monthly revenue that we believe we can expand and build upon. These actions are part of ongoing efforts to streamline operations, reduce debt, and reposition Digerati for the long term.”

Waiv Cloud provides colocation services across the US. The company’s website does not share any information about its data center footprint. DCD has reached out for more details.

The restructuring of Digerati comes after the company’s CEO, Arthur L. Smith, sadly passed away. The Board of Directors assumed CEO responsibilities following Smith’s death, and made the decision to divest Verve in May 2025.

At the time of Smith’s passing, Clement said: “I’ve had the privilege of working with Art on and off since 1988, and it’s hard to accept that our long-standing friendship and collaborative efforts have come to such an unexpected end.

“Together, we pioneered work in communications technologies, Internet software (GlobalSCAPE), and satellite-based voice and data communications (GeoComm and ATSI – AMEX: AI) during the early years of telecom deregulation throughout Mexico and Central and Latin America. Art was the kind of person you could always count on to go the distance, and we certainly did. Godspeed, Arthur.”