Key facts
- Crypto treasury firm ZeroStack has warned of substantial doubt about its ability to continue operating.
- The company reported an $82.5 million fair value loss on digital assets and a $61.3 million net loss for the first half of 2026.
- ZeroStack's 0G tokens are valued at $15.2 million, significantly below their recorded cost of $163.3 million.
- The company relies on staking rewards and token sales to fund its operations.
- ZeroStack previously operated as Flora Growth before its rebranding and shift to a crypto treasury strategy.
Crypto treasury firm ZeroStack has issued a stark warning about its survival, citing substantial doubt about its ability to continue operating over the next year. This marks a reversal from its previous assessment three months prior. The company reported a significant fair value loss of $82.5 million on its digital assets and a net loss of $61.3 million for the first half of 2026, as detailed in its Form 10-Q filing with the SEC.
As of June 30, ZeroStack held $2.6 million in cash, with negative working capital of $600,000 and an accumulated deficit of $339.1 million. The firm's substantial holdings of 75.1 million Zero Gravity (0G) tokens were valued at $15.2 million, a steep 91% decline from their recorded cost of $163.3 million. This significant depreciation directly impacts the company's financial stability.
ZeroStack's operational funding strategy relies heavily on staking rewards and token sales. In the first half of 2026, the company generated $3.8 million in staking revenue, earning approximately 6.6 million 0G tokens. It subsequently sold nearly 4.9 million of these tokens for $2.4 million to cover operating expenses. While the company anticipates that its cash reserves and ongoing token sales could fund its projected costs, management could not definitively conclude that these plans would be sufficient to allay concerns about its viability.
This latest assessment contrasts sharply with ZeroStack's first-quarter filing, where it expressed confidence in its ability to meet financial obligations for at least another year. The company was formerly known as Flora Growth, a cannabis and CBD products firm, before its rebranding and adoption of its current treasury strategy, which included significant digital asset commitments.