Crypto treasury firm ZeroStack warns of survival risk amid $82.5M loss
The Nasdaq-listed company relies largely on staking rewards to fund operations, while its 0G holdings were valued 91% below their recorded costs.
Crypto treasury firm ZeroStack has warned of a survival risk due to a reported $82.5 million loss, according to a filing with the US Securities and Exchange Commission (SEC). The Nasdaq-listed company, which relies on staking rewards and token sales to fund operations, now faces substantial doubt about its ability to continue operating over the next year.
ZeroStack disclosed a $2.6 million cash balance, negative working capital of $600,000, and an accumulated deficit of $339.1 million as of June 30. Additionally, the company reported $82.5 million in fair value loss on its 75.1 million Zero Gravity (0G) tokens, which were valued at $15.2 million, about 91% below their recorded costs.
Despite earning $3.8 million in staking revenue and selling nearly 4.9 million 0G tokens for $2.4 million, management cannot conclude that these measures will be enough to alleviate concerns about the company's ability to continue operations.
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