ST Doushen Unit Signs $112M Computing Power Service Deal

The structure here is as notable as the headline number: a large upfront prepayment by the seller, not the buyer, shifts working capital risk onto ST Doushen while revenue is recognized only as monthly services are delivered over five years. The 99.5% availability floor and monthly reporting give some contractual protection, but the real question is counterparty quality — a name like XYZ offers little visibility, and for a company already under ST status, the gap between the headline contract value and near-term cash flow is what matters. Whether the prepayment is recovered through service delivery on schedule is the open question.