ZeroStack told the SEC on Friday there's serious doubt about whether it can keep the lights on for the next 12 months. The Nasdaq-listed company, which pivoted from cannabis into digital assets last year, depends almost entirely on selling staking rewards to cover operating costs. That's a thin lifeline when your main asset is collapsing.
The 0G token, which powers Zero Gravity, has cratered 97% since September. ZeroStack's treasury holdings took a 91% hit. On paper, the company bought 75.1 million 0G tokens for $163.3 million. By June 30th, those same tokens were worth just $15.1 million. The math doesn't work.
The financial picture is grim. ZeroStack burned through $61.3 million in losses during the first half of 2026 alone. It had only $2.6 million in cash on hand at the end of June. Accumulated losses now sit at $339.1 million. The company is running negative working capital. There's no runway left.
How it got here
ZeroStack wasn't always a blockchain play. It operated as Flora Growth, a cannabis firm, before rebranding in September 2025 after raising $401 million in cash and tokens. The company then went all-in on 0G. In April 2026, it announced a $107 million financing deal that would give it 21% of the total 0G token supply, according to reporting at the time.
The bet backfired spectacularly. By July, ZeroStack's 0G position had swollen to 223 million tokens after the deal completed, but the token's collapse meant the treasury was worth a fraction of what the company paid. Now regulators have the filing, and the market knows the company is in distress.
This article is for informational purposes only and should not be construed as financial advice or investment guidance.
