ZeroStack, a Nasdaq-listed crypto treasury management firm, has warned of substantial doubt about its ability to continue as a going concern over the next 12 months. The company’s latest assessment, disclosed in a Form 10-Q filed with the US Securities and Exchange Commission (SEC), marks a reversal from its previous outlook just three months earlier.
Financial pressures mount
On June 30, ZeroStack’s cash reserves stood at $2.6 million, while negative working capital reached $600,000 and accumulated deficits totaled $339.1 million. Over the first half of 2026, the company posted a net loss of $61.3 million, alongside an $82.5 million fair value loss on digital assets held in treasury.
The primary driver of these losses has been the company’s holdings of Zero Gravity (0G) tokens. ZeroStack reported possession of 75.1 million 0G tokens, purchased at an aggregate cost of $163.3 million. However, the fair value of these tokens had dropped to $15.2 million by the end of June, representing a 91% decline from their original cost.
| Metric | Amount (as of June 30) |
|---|---|
| Cash | $2.6 million |
| Negative working capital | $600,000 |
| Accumulated deficit | $339.1 million |
| 0G token cost | $163.3 million |
| 0G token fair value | $15.2 million |
| Net loss (H1 2026) | $61.3 million |
| Digital asset fair value loss (H1 2026) | $82.5 million |
Revenue sources and liquidity
ZeroStack funds its operations mainly through staking rewards and strategic token sales, both of which link directly to Zero Gravity (0G) token performance. During the first six months of the year, the company generated $3.8 million in staking revenue, earning approximately 6.6 million 0G tokens after validator commissions. Of this, ZeroStack sold nearly 4.9 million tokens for $2.4 million to support operating expenses.
To meet its ongoing obligations, ZeroStack indicated that it plans to rely on cash reserves and additional token sales. Nonetheless, its management acknowledged that these measures may not be sufficient to shore up its financial position. The ability to access liquidity is closely tied to the price and trading volume of 0G, exposing the company to further risk if market conditions deteriorate.
ZeroStack’s management stated that while they expect operating costs can be covered through cash and sales of staking rewards, they cannot conclude with confidence that these actions will fully resolve continued operational doubts.
Mini dictionary: ZeroStack is a publicly traded crypto treasury company focused on digital asset management and strategic token holdings. It was formerly known as Flora Growth, a cannabis and CBD firm, before rebranding to enter the cryptocurrency sector.
Previous outlook and company origin
In its first-quarter SEC filing, ZeroStack had projected that its cash and staking revenues would be sufficient to meet all financial obligations for at least the following year. This stance has now shifted amid worsening market conditions and falling asset values.
ZeroStack originated as Flora Growth, a company specializing in cannabis and CBD products. On September 19, Flora Growth secured $401 million in funding for a Zero Gravity treasury initiative, with $35 million in cash commitments and over $366 million in non-cash digital assets. Following this strategic move, the firm rebranded as ZeroStack and maintained its listing on Nasdaq, transitioning fully to the digital asset sector.
After securing $401 million in 0G-related funding, ZeroStack transitioned from its cannabis business to focus solely on crypto treasury management.
