Nasdaq-listed ZeroStack is fighting for survival after the value of its massive 0G token treasury collapsed from a recorded cost of $163.33 million to a mere $15.17 million as of June 30, a decline of over 90%. The company, which integrates blockchain operations, now plans to fund its operations primarily by selling staking rewards from its 0G holdings, but its own management has expressed substantial doubt about the company's ability to continue as a going concern.
According to the company's Form 10-Q filed on July 31 for the quarter ended June 30, ZeroStack held 75.1 million 0G tokens with a fair value of $15.17 million, alongside a small Bitcoin position, bringing total digital assets to a fair value of $15.21 million. The firm reported only $2.6 million in cash, negative working capital of $600,000, a $339.1 million accumulated deficit, and a net loss of $61.3 million for the first half of 2026. These figures also accounted for an accounting loss of $82.5 million from remeasuring digital assets at fair value, though this was not a realized cash loss.
The liquidity plan hinges on staking rewards. During the first half of 2026, ZeroStack earned 6.62 million 0G from staking, net of validator commissions, and sold 4.94 million tokens for just $2.4 million in cash. However, the filing warns that staking rewards can decline or disappear and that sales depend entirely on token prices and market conditions. As of August 1, 0G traded near 15 cents with modest daily volume around $7 million, making the strategy precarious.
Adding to the complexity, on July 20, ZeroStack acquired Texas Blocker, bringing its total 0G holdings to 223.77 million tokens valued at approximately $40.5 million based on a recent closing price. The transaction involved related-party ties: Texas Blocker was formed by ZeroStack's CEO and CFO, and Zero Gravity Labs owned 51% of it as of June 30. ZeroStack's Executive Chairman was also the CEO of Zero Gravity Labs at the time of the deal. While the acquisition increased the 0G stake, it does not resolve immediate cash flow problems and heightens exposure to 0G's volatility.
With staking rewards currently the only lifeline, ZeroStack's survival now directly depends on a token whose price has already cratered, leaving investors and analysts watching for any signs of asset sales, restructuring, or additional capital raises.
