ZeroStack financial risk escalates as 0G token loses 91% of value
A crypto treasury company that once boasted hundreds of millions in digital assets is now telling regulators it might not survive the year. ZeroStack, the Nasdaq-listed firm formerly known as Flora Growth, disclosed in a fresh SEC filing that ZeroStack financial risk has escalated sharply, with a $339.1 million accumulated deficit, an $82.5 million fair value loss on its digital holdings, and a warning that its ability to keep operating is now in genuine doubt. The disclosure marks a stark reversal from just three months earlier, when the company said its cash position was sound.
Key takeaways
- ZeroStack warned of substantial doubt about its ability to continue operating over the next year, according to a Form 10-Q filed with the SEC.
- The company held $2.6 million in cash and negative working capital of $600,000 as of June 30, 2026, against an accumulated deficit of $339.1 million.
- ZeroStack 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.
- Its 75.1 million Zero Gravity (0G) tokens were worth $15.2 million, roughly 91% below their $163.3 million recorded cost.
- The company reversed its own Q1 outlook, which had said cash and staking rewards would cover working capital needs for at least another year.
ZeroStack’s Financial Losses and Asset Devaluation
The single biggest driver behind ZeroStack’s distress is a collapse in the value of the digital assets sitting on its balance sheet. For the first half of 2026, the company recorded an $82.5 million fair value loss on those holdings, contributing to an overall net loss of $61.3 million for the period. Those are not small numbers for a company already carrying a $339.1 million accumulated deficit.
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