ZeroStack, a Nasdaq-listed digital asset company, has expressed “substantial doubt” about its ability to remain in business for the next year after the collapse of its 0G token holdings. The company disclosed in a filing to the U.S. Securities and Exchange Commission (SEC) that it faces major liquidity concerns due to the sharp decline in its treasury’s value.
Massive treasury loss and financial strain
The company revealed that it relies mainly on selling staking rewards from its 0G treasury to fund operations. As of June 30, ZeroStack reported just $2.6 million in cash and negative working capital amounting to $0.6 million. The firm posted a net loss of $61.3 million in the first half of 2026 and held an accumulated deficit of $339.1 million.
ZeroStack previously operated under the name Flora Growth, a cannabis-focused business, before its rebranding in September 2025. The company changed its focus after acquiring $401 million in cash and tokens to support a transition toward managing digital assets, specifically 0G, the native token of the Zero Gravity network.
In April 2026, ZeroStack announced a $107 million financing deal, acquiring enough tokens to represent 21% of the total 0G supply. The company’s SEC filing indicated that, as of June 30, it owned 75,101,767 0G tokens, purchased for $163.3 million, but the fair value of these holdings had fallen to $15.1 million. This loss equated to more than 90% of the original investment. Following an additional token increase in July, the total holding reached approximately 223 million 0G tokens.
Mini dictionary: Zero Gravity is a blockchain project that issues the 0G token, supporting decentralized applications and staking rewards as part of its network operations.
| Metric | As of June 30, 2026 | Notes |
|---|---|---|
| Cash | $2.6 million | |
| Net loss (H1 2026) | $61.3 million | |
| Accumulated deficit | $339.1 million | |
| 0G tokens held | 75.1 million (June 30), 223 million (July 20) | Original cost $163.3 million, fair value $15.1 million (June 30) |
Dependence on staking as liquidity dwindles
ZeroStack stated that nearly all of its 0G tokens have been staked, with the expectation that staking rewards will be sufficient to sustain the company’s operating expenses. Despite these measures, management said it remains uncertain about the firm’s long-term ability to meet its financial obligations.
“Although management has implemented the plans described above, it cannot conclude that such plans are probable of effectively mitigating the conditions and events that raise substantial doubt,” ZeroStack wrote in its SEC filing.
The company’s future now appears closely tied to the volatile 0G token market and its ability to generate adequate staking returns to fund ongoing operations.
0G token price crash
The price of Zero Gravity’s 0G token has dropped 97% since its peak in September 2025, and more than 98% lower than its all-time high of $7.05. At press time, CoinGecko data showed the token trading at $0.1383, with a market capitalization of $29.5 million.
ZeroStack’s ongoing challenges highlight the devastating effect a rapid decline in token value can have when a company’s reserves are heavily concentrated in a single cryptocurrency.
