Crypto treasury firm Zero
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Nasdaq-listed crypto treasury company ZeroStack warned it may not be able to continue operating over the next year following an $82.5 million fair value loss on digital assets and a net loss of $61.3 million in H1 2026. The company’s 75.1 million Zero Gravity (0G) tokens are valued about 91% below their recorded costs. ZeroStack relies on staking rewards and token sales to fund operations, but the recent filings highlight substantial doubt about its survival.
Why it matters
ZeroStack’s warning matters because it signals significant financial strain for a publicly listed crypto treasury firm, highlighting potential risks tied to reliance on digital asset values and staking yields. Their liquidity and operational viability depend heavily on 0G token prices and market liquidity, demonstrating challenges companies face in sustaining crypto treasury models.
Key context
ZeroStack was formerly Flora Growth, a cannabis and CBD firm that rebranded after announcing $401 million in funding for a 0G treasury strategy in September 2025. The initial funding included $35 million in cash and over $366 million in digital assets. For the first half of 2026, ZeroStack earned about 3.8 million dollars in staking revenue and sold 4.9 million 0G tokens for $2.4 million to cover expenses. Three months earlier, ZeroStack had believed its cash flow was sufficient to operate for at least another year.
Key numbers and entities
ZeroStack reported $2.6 million in cash, negative working capital of $600,000, an accumulated deficit of $339.1 million, $82.5 million in digital asset losses, and a net loss of $61.3 million for H1 2026. It holds 75.1 million 0G tokens valued at $15.2 million, down from a recorded cost of $163.3 million. The company earned $3.8 million in staking revenue and sold 4.9 million tokens for $2.4 million to fund operations.
What remains unclear
The source does not provide detailed information on ZeroStack’s specific plans to address its liquidity challenges beyond stating it may sell treasury holdings if needed. It also notes that management “could not conclude” that current plans are sufficient to assure continued operations, signaling uncertainty about the company’s future viability.