
ZeroStack warns of survival risk after $82.5M loss
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- ZeroStack warned there is substantial doubt about its ability to continue operating over the next year.
- The company reported an US$82.5 million digital asset loss and US$61.3 million first-half net loss.
- ZeroStack relies on 0G staking rewards and token sales to fund its operations.
ZeroStack warned about its ability to continue operating after recording an US$82.5 million digital asset loss.
ZeroStack held 75.1 million Zero Gravity (CRYPTO:0G) tokens worth US$15.2 million, about 91% below their US$163.3 million cost.
ZeroStack had US$2.6 million in cash, negative working capital of US$600,000 and a US$339.1 million accumulated deficit.
The company said cash and staking sales should cover forecast costs, but management could not conclude these plans were sufficient.
ZeroStack earned US$3.8 million from staking during the first half and sold 4.9 million 0G tokens for US$2.4 million.
The company previously operated as Flora Growth before securing US$401 million for its 0G treasury strategy and rebranding as ZeroStack.