ZeroStack Warns of Survival Risk After Posting an $82.5M Loss and Deep 0G Valuation Hit

TL;DR:

• ZeroStack warned that substantial doubts exist about its ability to continue operating, reversing its position from three months ago.
• The company recorded a fair value loss of $82.5 million on digital assets and a net loss of $61.3 million in the first half of 2026.
• Its 75.1 million 0G tokens had a market value of $15.2 million as of June 30, 91% below their recorded cost of $163.3 million.

ZeroStack warned the U.S. Securities and Exchange Commission (SEC) about the existence of substantial doubts regarding its ability to continue operating over the next twelve months. Its disclosure was included in a 10-Q form filed on Friday. This reverses the position the company had maintained just three months ago in its two previous reports.

As of June 30, 2026, the firm reported $2.6 million in cash, a negative working capital of $600,000 and an accumulated deficit of $339.1 million. It also recorded a fair value loss of $82.5 million on its digital assets and a net loss of $61.3 million for the first half of the year.

ZeroStack Falls Under the Weight of Its 0G-Based Strategy

The company holds 75.1 million Zero Gravity (0G) tokens, acquired at an aggregate cost of $163.3 million. At the close of the period, those assets had a market value of just $15.2 million, implying a 91% decline from their recorded cost. The situation exposes the fragility of a model that relies almost exclusively on the price and liquidity of a single token to finance its operations.

During the first half of 2026, ZeroStack generated $3.8 million in revenue from staking, equivalent to approximately 6.6 million 0G tokens after deducting validation fees. To cover operating expenses, it sold around 4.9 million tokens for $2.4 million. Management acknowledged that it cannot conclude those plans are sufficient to dispel doubts about business continuity, though it noted it could liquidate part of its treasury holdings if necessary.

ZeroStack has origins far removed from digital finance. The company was formerly Flora Growth, a firm dedicated to cannabis and CBD products. In September 2025, Flora announced $401 million in financing to adopt a treasury strategy based on 0G tokens, which included $35 million in cash and more than $366 million in digital assets in kind. Following the transaction, the company rebranded as ZeroStack and retained its Nasdaq listing.