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ZeroStack leans on 0G staking rewards as going-concern doubt lingers

ZeroStack leans on 0G staking rewards as going-concern doubt lingers

The digital-asset treasury firm reported $2.6 million of cash, a $61.3 million first-half loss and a more than 90% markdown on its June 30 0G holdings while warning its liquidity plan may not be enough.

Fact Check
Every element of the claim is directly confirmed by ZeroStack's primary SEC Form 10-Q (filed 2026-07-31): $2.6M cash, $61.3M ($61,275K) H1 net loss, $82.5M ($82,506K) loss from fair-value changes in digital assets (the 0G markdown), substantial going-concern doubt, and management's stated plan to fund operations via 0G staking rewards (and asset monetization if needed). The StockTitan filing summary and CryptoSlate report corroborate these figures. No conflicting evidence was found.
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Summary

ZeroStack said it expects to fund operations mainly by selling staking rewards from its 0G token treasury, but management could not conclude that those plans remove substantial doubt about the company’s ability to continue as a going concern. In its filing, the company reported $2.6 million in cash, negative working capital of $600,000, a $339.1 million accumulated deficit and a $61.3 million net loss for the first half of 2026. At June 30, ZeroStack held 75,101,767 0G tokens bought for $163.3 million and valued at $15.1 million, leaving the position down by more than 90%. The company said substantially all of its 0G tokens have been staked and that rewards are expected to provide liquidity, though it added that it still could not conclude those plans would be effective over the next 12 months. ZeroStack, formerly cannabis company Flora Growth, rebranded in September 2025 after securing $401 million in cash and tokens for a 0G treasury strategy. It later expanded that bet through a $107 million financing transaction announced in April 2026, and said its 0G holdings rose by an additional 148.0 million tokens on July 20 to roughly 223 million. The 0G token has since fallen more than 97% from its September 2025 high and more than 98% from its all-time high of $7.05, trading around $0.1383 with a $29.507 market cap, according to CoinGecko.

Terms & Concepts
  • staking rewards: Tokens earned by locking or delegating crypto holdings to help support a blockchain network.
  • going concern: An accounting assessment of whether a company is likely to keep operating over the next 12 months.
  • 0G token treasury: A corporate treasury strategy centered on holding the 0G token as a primary asset.