ZeroStack warns of going-concern risk after $82.5 million loss on 0G holdings

Nasdaq-listed crypto treasury company ZeroStack has warned of substantial doubt regarding its ability to continue as a going concern over the next 12 months. The warning, disclosed in a July 31, 2026 SEC filing, follows an $82.5 million fair value loss on digital assets during the first half of 2026. ZeroStack's 75.1 million Zero Gravity token treasury plummeted 91% in value to $15.2 million as of June 30, 2026, undermining its strategy of funding operations through staking rewards and token sales.

Zerostack 0G holdings collapse

• ▪ZeroStack recorded an $82.5 million fair value loss on digital assets and a net loss of $61.3 million during the first half of 2026.
• ▪ZeroStack's Zero Gravity token treasury was valued approximately 91% below its acquisition cost as of June 30, 2026.
• ▪ZeroStack held 75.1 million Zero Gravity tokens with an aggregate acquisition cost of $163.3 million and a fair value of approximately $15.2 million as of June 30, 2026.

Staking rewards cash generation

• ▪ZeroStack sold nearly 4.9 million Zero Gravity tokens for $2.4 million during the first half of 2026 to fund its operating expenses.
• ▪ZeroStack generated $3.8 million in staking revenue during the first half of 2026, earning approximately 6.6 million Zero Gravity tokens after validator commissions.

Texas Blocker acquisition

• ▪ZeroStack acquired Texas Blocker on July 20, 2026, which increased its total Zero Gravity token holdings to 223.77 million.
• ▪The acquisition of Texas Blocker increased ZeroStack's exposure to Zero Gravity token price volatility and immediate cash flow challenges.

Going concern doubts

• ▪ZeroStack reported $2.6 million in cash, negative working capital of $600,000, and an accumulated deficit of $339.1 million as of June 30, 2026.
• ▪ZeroStack's going concern warning reversed its previous quarterly assessments, which had stated that available cash and staking rewards would meet working capital needs for at least 12 months.
• ▪ZeroStack warned in a Form 10-Q filed on July 31, 2026, that substantial doubt exists about its ability to continue as a going concern over the next 12 months.

Investor implications

• ▪ZeroStack's balance sheet is heavily weighted toward Zero Gravity holdings, meaning the ongoing price drop could lead to further write-downs and affect investor confidence.
• ▪ZeroStack Chief Executive Officer Daniel Reis Faria stated in May 2026 that regulatory uncertainty continued to keep larger institutional investors from increasing participation.