Nasdaq-listed crypto treasury company ZeroStack warned it faces substantial doubt about its ability to continue operating, after posting an $82.5 million fair value loss on its 0G token holdings. The tokens, once carried at $163.3 million, are now valued 91% below that cost. Formerly the cannabis firm Flora Growth, the company said it cannot conclude its cash and staking plans will be enough to keep it running.
Nasdaq-listed crypto treasury firm ZeroStack disclosed in a Form 10-Q filed with the US Securities and Exchange Commission on Friday that substantial doubt exists about its ability to continue operating over the next year, reversing the assessment it gave three months earlier. The filing reported $2.6 million in cash, negative working capital of $600,000 and an accumulated deficit of $339.1 million as of June 30. ZeroStack also posted an $82.5 million fair value loss on digital assets and a net loss of $61.3 million for the first half of 2026.
0G holdings fall 91% below cost
ZeroStack's 75.1 million Zero Gravity (0G) tokens carried an aggregate cost of $163.3 million but a fair value of just $15.2 million as of June 30, leaving the position about 91% under its recorded cost. Crypto Briefing put the scale in context: a $100 million position in 0G bought at cost would now be worth roughly $9 million after the same decline. ZeroStack depends on staking rewards and token sales to fund operations, tying its ability to raise cash to 0G's price and trading liquidity.
Staking income can't cover the gap
In the first half of the year, ZeroStack earned $3.8 million in staking revenue, collecting about 6.6 million 0G tokens after validator commissions. It also sold nearly 4.9 million tokens for $2.4 million to fund operating expenses. Management expects cash and staking-reward sales to cover forecast costs and said it could sell more treasury holdings if needed. However, it could not conclude those plans would be enough to ease doubts about its ability to continue operating — a reversal from its first-quarter filing, which said cash and staking rewards would meet its obligations for at least another year.
From cannabis firm to crypto treasury
ZeroStack was previously Flora Growth, a cannabis and CBD products company. On Sept. 19, Flora announced $401 million in funding for a 0G treasury strategy, including $35 million in cash and equivalent commitments and more than $366 million in in-kind digital assets, then rebranded as ZeroStack while keeping its Nasdaq listing.
Sources: U.S. Securities and Exchange Commission, Cointelegraph, Crypto Briefing
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