Nasdaq-listed crypto treasury company ZeroStack has raised serious questions about its financial runway, warning in a recent SEC filing that “substantial doubt” exists about whether it can keep operating for the next year. The assessment marks a sharp reversal from its view just a quarter earlier, highlighting how dependent the company’s plan is on staking income and the liquidity of its Zero Gravity (0G) token.

In a Form 10-Q filed with the U.S. Securities and Exchange Commission on Friday, ZeroStack reported $2.6 million in cash and negative working capital of $600,000 as of June 30, along with an accumulated deficit of $339.1 million. The filing also detailed a major unrealized drag from its token treasury: an $82.5 million fair value loss on digital assets and a net loss of $61.3 million for the first half of 2026.

Key takeaways

• ZeroStack now says there is substantial doubt it can continue operating over the next year, reversing its earlier “sufficient” outlook in a prior filing.
• As of June 30, the company held 75.1 million 0G tokens, valued at $15.2 million versus an aggregate cost of $163.3 million (about 91% below recorded cost).
• The company relies on staking rewards and sales of 0G tokens to fund operations, making its cash position sensitive to token price and trading liquidity.
• ZeroStack reported $3.8 million in staking revenue in the first half of 2026, but it also recorded significant losses and could not conclude that its planned funding steps fully remove going-concern risk.

SEC filing flags going-concern risk

ZeroStack’s latest filing is notable not just for its headline loss figures, but for the governance and risk signal it sends to investors. Management stated that it could not conclude its plans would be enough to eliminate doubts about whether the company can continue as a going concern over the next year.

The company’s balance sheet underscores the pressure behind that conclusion. With $2.6 million in cash and negative working capital of $600,000 at June 30, ZeroStack’s near-term flexibility appears limited. It also reported an accumulated deficit of $339.1 million, reflecting losses that have compounded over time.

Beyond liquidity, the filing shows the company is carrying a large unrealized impairment in its digital asset treasury. ZeroStack disclosed an $82.5 million fair value loss on digital assets during the period, alongside a net loss of $61.3 million for the first half of 2026.

A treasury strategy tied to 0G’s market

ZeroStack’s operating model depends heavily on 0G token performance and the token’s market depth. The company reported that it holds 75.1 million 0G tokens with an aggregate cost of $163.3 million and a fair value of $15.2 million as of June 30. Put differently, the holdings were valued about 91% below their recorded costs.

That gap matters for both accounting and funding. If the company intends to finance operations through token sales—especially during periods of weak liquidity—its ability to raise cash could be constrained even if balances appear large on paper. The company explicitly linked its funding capacity to both the 0G price and trading liquidity, according to the filing.

ZeroStack’s management also described reliance on staking rewards and token sales. In practice, staking income can provide periodic cash flow, but it may not be sufficient in periods when token markets are illiquid or when valuations fall further.

Staking revenue helps—yet the runway question remains

During the first half of 2026, ZeroStack reported $3.8 million in staking revenue. After validator commissions, the company said it earned about 6.6 million 0G tokens from staking activity.

To support expenses, ZeroStack sold nearly 4.9 million 0G tokens for $2.4 million over the same period. The filing indicates that these cash inflows—staking-related and sale-related—are central to its ability to pay forecast operating costs.

ZeroStack also said that, if needed, it could sell some of its treasury holdings. However, management’s conclusion did not fully reassure the markets: it said it could not determine that those actions would be enough to address going-concern doubts.

The tension here is straightforward. When a company’s main treasury assets have experienced steep valuation declines, the theoretical ability to raise cash by selling holdings can become less effective in the real world—particularly if market pricing and liquidity do not support the volume and proceeds management may be counting on.

Backtracking from earlier filings

Perhaps the most consequential element of the news is the reversal in ZeroStack’s assessment. In its first-quarter Form 10-Q filing, the company stated that its cash and staking rewards would be sufficient to meet its working capital requirements and obligations for at least another year.

In the most recent filing, it no longer reaches that conclusion and instead flags substantial doubt about continued operations over the next year. The shift suggests that circumstances changed—or that management’s confidence in the sustainability of its funding plan weakened as results and valuations evolved.

ZeroStack’s corporate background also provides context for how the company arrived at this point. The filing notes that the company was previously Flora Growth, a cannabis and CBD products firm. On Sept. 19, Flora announced $401 million in funding for a 0G treasury strategy, including $35 million in cash and equivalent commitments and more than $366 million in in-kind digital assets. The company later rebranded as ZeroStack and retained its Nasdaq listing.

Those details underline why investors are likely to focus on token treasury outcomes: the strategy is fundamentally designed to monetize staking and manage liquidity through sales. When 0G’s fair value diverges sharply from recorded cost, the difference can translate into both accounting losses and real constraints on financing flexibility.

What readers should watch next is whether ZeroStack provides further clarity on how it plans to balance staking, token sales, and liquidity needs—particularly given its much narrower margin for error after the “substantial doubt” disclosure. Investors will also likely track changes in 0G trading conditions, since the company’s own filings tie its funding outlook directly to token price and market liquidity.

ZeroStack has warned its cash position may not support operations for another year.

According to a Form 10-Q filed with the U.S. Securities and Exchange Commission on Friday, Nasdaq-listed crypto treasury company ZeroStack said substantial doubt exists about its ability to continue as a going concern over the next 12 months, reversing the conclusion it reached in its previous quarterly filings.

As of June 30, the company reported $2.6 million in cash, negative working capital of $600,000, and an accumulated deficit of $339.1 million. During the first half of 2026, it recorded an $82.5 million fair value loss on digital assets and a net loss of $61.3 million, according to the filing.

Management said existing cash, proceeds from staking rewards, and possible sales of treasury assets are expected to support operating costs. Even so, the company concluded it could not determine that those measures would remove the substantial doubt surrounding its ability to continue operating for the next year.

ZeroStack’s 0G treasury has lost most of its recorded value

The filing showed ZeroStack held 75.1 million Zero Gravity (0G) tokens with an aggregate acquisition cost of $163.3 million. Their fair value had fallen to $15.2 million by June 30, leaving the treasury valued about 91% below its recorded cost.

The company said its operating model depends largely on staking rewards and periodic token sales, making its access to cash dependent on both the market price and trading liquidity of the 0G token.

For the first six months of the year, ZeroStack generated $3.8 million in staking revenue after earning about 6.6 million 0G tokens following validator commissions. Over the same period, it sold nearly 4.9 million tokens for $2.4 million to cover operating expenses.

Although management said additional treasury sales remain available if needed, the filing stated that those plans were not sufficient to conclude that the going concern uncertainty had been resolved.

Filing reverses the company’s earlier liquidity outlook

The latest assessment differs from the position ZeroStack presented just three months earlier.

In its first-quarter filing, the company said available cash together with expected staking rewards would be enough to meet working capital needs and other obligations for at least the following 12 months. The latest report withdraws that conclusion after a sharp decline in the value of its digital asset holdings.

ZeroStack adopted its current treasury strategy after operating for years as cannabis and CBD products company Flora Growth.

On Sept. 19, the company announced a $401 million financing package to establish a treasury focused on the Zero Gravity ecosystem. The package included $35 million in cash and cash-equivalent commitments alongside more than $366 million in in-kind digital asset contributions. Flora Growth later rebranded as ZeroStack while retaining its Nasdaq listing.

ZeroStack CEO previously pointed to regulation as another institutional hurdle

The company’s financial disclosure comes months after ZeroStack Chief Executive Officer Daniel Reis-Faria discussed another challenge facing digital asset companies: regulatory uncertainty.

Speaking to crypto.news in May, Reis-Faria said progress on U.S. stablecoin legislation had reduced one source of uncertainty for investors but had not yet convinced larger institutions to increase participation.

His comments followed a bipartisan agreement between Senators Thom Tillis and Angela Alsobrooks on stablecoin provisions in the CLARITY Act that prohibited interest-like payments resembling bank deposits while allowing activity-based rewards tied to payments and platform use.

At the time, Reis-Faria said the remaining concern was not the legislation itself but uncertainty over how regulators would implement it. Under the proposal, the SEC, CFTC and Treasury would jointly develop implementing rules within one year after the legislation became law.

JPMorgan had previously described passage of the CLARITY Act by midyear as a positive catalyst for digital asset markets, while Blockchain Association CEO Summer Mersinger said resolving the stablecoin yield debate moved comprehensive market structure legislation closer to becoming law.

Standard Chartered also estimated that allowing unrestricted stablecoin yields could redirect as much as $500 billion in bank deposits by 2028, providing context for the banking industry’s resistance during negotiations.

Company now faces both market and funding pressure

The SEC filing indicates that ZeroStack’s operating cash generation remains closely tied to the performance of the 0G ecosystem through staking income and token sales.

With the market value of its treasury declining substantially from its acquisition cost, management said future liquidity will continue to depend on available cash, staking rewards, token prices, and market liquidity. 

Despite outlining those funding options, the company concluded that substantial doubt about its ability to continue as a going concern remains in place for the coming year.

Bitcoin BTC$62,560.27 started the week just below $63,000, with Friday’s U.S. jobs report the biggest macro event likely to determine whether the July rebound continues, though developments in Iran may take on greater significance in the coming days.

A muted rise in U.S. hiring could be the best outcome for risk assets like crypto. Such a rise would ease fears of an economic slowdown, but wouldn’t push the Federal Reserve closer to raising interest rates.

IG market analyst Tony Sycamore said a gain of around 88,000 jobs with unemployment unchanged at 4.2% would strike that balance in a “Goldlocks-type print.”

The U.S. government’s borrowing plans are another macro focus. JPMorgan strategist Jay Barry said the Treasury is likely to keep its regular debt sales unchanged, which would avoid adding pressure to interest rates. Larger-than-expected sales could raise borrowing costs for households and companies and weigh on crypto.

Traders will also watch earnings from Circle, Galaxy, Block and six bitcoin miners. BIP-110, a proposal to temporarily limit non-financial data stored on the Bitcoin blockchain, is expected to enter its required miner-signaling period.

Binance opened its August Monthly Leaderboard for Dual Investment users on Aug. 3, offering a top reward of 5,888 USDC. 

The promotion runs from 06:00 UTC on Aug. 3 through 23:59 UTC on Aug. 31.

Eligible users will be ranked by their average subscription amount across Dual Investment and Dual Investment RFQ. Only subscriptions lasting more than three days will count. Binance requires participants to complete identity verification and confirm enrollment through the activity page.

Binance leaderboard favors larger subscriptions

The ranking formula multiplies each eligible subscription amount by its duration and divides the result by 30 days. Both the size and length of a position can therefore affect a participant’s place. A single large subscription made near the deadline may carry less weight than the same amount committed for longer.

The first ranked user will receive 5,888 USDC. Users in second and third place qualify for 2,188 USDC each. Rewards decline across later tiers to 68 USDC for places 71 through 100. Based on the published table, the maximum combined face value is 25,500 USDC if Binance distributes every listed reward. The exchange did not state that total directly.

In addition, the prizes are not scheduled to arrive as freely withdrawable USDC. Binance said each reward will be issued as a Dual Investment subscription lasting 14 days. Distribution is due within 14 days after the campaign closes, with Sept. 14 listed as the final delivery date.

Participants also cannot cancel or redeem a Dual Investment subscription early. Sub accounts do not receive separate rankings. Binance may reject users it believes acted fraudulently or broke the promotion rules. It also reserves the right to change, suspend or cancel the campaign.

Dual Investment can convert assets at settlement

Binance markets Dual Investment as a “high yield” structured product with Buy Low and Sell High choices. Users select a deposit asset, target price and settlement date. The settlement outcome determines whether they receive the original deposit currency or another asset.

For Buy Low, deposited funds can be converted into the selected cryptocurrency when the settlement price reaches the target condition. For Sell High, deposited crypto can be converted into a stablecoin or another currency. Binance’s official FAQ says the product does not protect principal and warns that customers may miss a better market price.

The campaign page lists BTC, ETH, SOL and BNB among Sell High deposit assets, alongside 17 other tokens. Buy Low accepts USDT, USDC, BTC or ETH. Binance advertises APRs of 15% or more, although rates can vary according to the target price, duration and market volatility.

The exchange warns that the stated APR refers to rewards in the deposit currency. It is not a forecast of fiat returns or the value of the alternate currency at settlement. Funds remain locked until settlement, limiting a participant’s ability to respond to sudden price movements.

As crypto.news previously reported, Binance introduced Dual Investment as a way to buy or sell crypto at a chosen future price while receiving rewards during the subscription period. The August leaderboard adds a ranking incentive rather than changing the product’s settlement rules.

Aug. 31 closes the Binance ranking window

Users must join the activity and maintain qualifying subscriptions during the campaign. The announcement does not disclose the number of participants, the total subscription value already committed or whether every regional Binance entity will offer the promotion. Binance states that its products may not be available in every region.

The next confirmed dates are Aug. 31, when the ranking period closes, and Sept. 14, when eligible rewards should be distributed. In related coverage, crypto.news reported that Binance is also running an $800,000 XRP campaign for eligible RLUSD users through Aug. 14. That promotion covers qualifying activity across Binance Earn, Margin and Futures.

The Smarter Web Company has increased its Bitcoin treasury by acquiring another 11.89 BTC, taking its total holdings to 2,712 BTC.

According to BitcoinTreasuries.NET, the London-listed company completed the latest purchase of 11.89 Bitcoin, lifting its corporate treasury to 2,712 BTC and moving it to 28th place in the Bitcoin 100 ranking of public companies holding the asset.

The latest acquisition follows the company’s decision last month to retire its Smarter Convert financing instrument ahead of schedule, a move that left it holding 2,700 BTC after selling part of its treasury to settle the obligation. 

By adding fresh Bitcoin within weeks, the company has resumed the accumulation strategy it has repeatedly described as part of its long-term treasury policy.

Bitcoin purchase pushes holdings above July level

BitcoinTreasuries.NET said the additional purchase has increased The Smarter Web Company’s reserves by 11.89 BTC, taking the balance from 2,700 BTC to 2,712 BTC.

The update also places the company at No. 28 in the global Bitcoin 100 corporate treasury rankings, up from earlier positions it occupied as its holdings expanded through regular purchases over the past year.

In July, The Smarter Web Company announced it had repaid its $11.7 million Smarter Convert instrument nearly two weeks before maturity by selling 177.8909127 BTC at an average price of $65,762 per coin. 

The company said the Bitcoin sold had originally been purchased using proceeds from the financing arrangement, which required virtually all of the subscribed capital to be invested in Bitcoin.

Following that repayment, the company confirmed it held exactly 2,700 BTC while removing the potential issuance of 7,718,551 ordinary shares linked to the convertible structure from its fully diluted capital calculations.

Bitcoin strategy continues after convertible repayment

Company chief executive Andrew Webley previously said the Smarter Convert structure served as an alternative source of funding while the firm was building its Bitcoin treasury, but added that management no longer viewed convertible financing as the most suitable option at its current stage.

According to the company’s July announcement, investment manager TOBAM and its affiliated entities supported the early repayment request, allowing the instrument to be settled before its scheduled maturity.

Although the financing arrangement has now been retired, the company said at the time that its long-term “10 Year Plan” to build a Bitcoin treasury remained unchanged. The latest purchase adds further support to that strategy, lifting the company’s holdings above the level reported after the repayment.

Earlier purchases expanded the company’s Bitcoin treasury

The Smarter Web Company has steadily expanded its Bitcoin reserves through repeated acquisitions since 2025.

In September 2025, the company appointed Coinbase Institutional as an additional Bitcoin custody partner alongside its existing custody arrangements through Coinbase Prime. At that point, it held 2,470 BTC after completing another 30 BTC purchase.

By October 2025, the company had increased its holdings to 2,650 BTC after purchasing an additional 100 BTC for approximately £9.08 million, or about $12.1 million. The company said the acquisition formed part of its long-term treasury strategy and described Bitcoin accumulation as a core element of its corporate treasury policy.

At the time, Bitcoin Treasuries ranked the company 30th among public firms holding Bitcoin. The company also reported a year-to-date Bitcoin yield of 57,718% and a quarter-to-date Bitcoin yield of 0.58% on its holdings, while its shares recorded a modest gain after the purchase announcement.

Corporate treasury position continues to climb

The latest update from BitcoinTreasuries.NET indicates that The Smarter Web Company has continued adding to its Bitcoin reserves despite using nearly 178 BTC to repay the Smarter Convert obligation only weeks earlier.

With total holdings now standing at 2,712 BTC, the company has added 12 BTC since completing the repayment and has climbed to 28th place among public corporate Bitcoin holders.

Previous company statements have described the business as the largest publicly traded corporate Bitcoin holder in the United Kingdom. It has also raised additional capital in support of treasury expansion, including a £17.5 million fundraising announced in 2025 for future Bitcoin purchases and related treasury infrastructure.

The latest purchase does not include any indication of changes to the company’s treasury policy. Instead, the updated holdings continue the accumulation plan management has consistently outlined under its 10 Year Plan while strengthening its position in the global corporate Bitcoin rankings.

Nasdaq-listed crypto treasury firm ZeroStack has told the market that “substantial doubt” exists about whether it can keep operating over the next year, according to a recent SEC filing. The warning marks a notable shift from the company’s earlier assessment, where it said its liquidity position was expected to support operations for at least another year.

In a Form 10-Q filed with the US Securities and Exchange Commission on Friday, ZeroStack reported $2.6 million in cash as of June 30, negative working capital of about $600,000, and an accumulated deficit of $339.1 million. The company also recorded an $82.5 million fair value loss on digital assets and posted a net loss of $61.3 million for the first half of 2026. (Source: SEC Form 10-Q)

Key takeaways

• ZeroStack’s filing introduces “substantial doubt” over its ability to continue operating, reversing an earlier liquidity outlook.
• As of June 30, the firm reported $2.6 million cash and negative working capital of roughly $600,000.
• 0G token holdings were valued at about $15.2 million versus an aggregate cost of $163.3 million—an indicated ~91% decline relative to recorded cost.
• The business model depends on staking rewards and token sales, leaving funding levels tied to 0G price and market liquidity.
• In the first half of 2026, ZeroStack generated $3.8 million from staking revenue and sold nearly 4.9 million tokens for $2.4 million.

What the SEC filing says about liquidity

The company’s latest Form 10-Q provides a snapshot of a treasury-led model facing tightening economics. ZeroStack disclosed $2.6 million in cash at the end of the first half of 2026 and negative working capital of approximately $600,000. It also reported an accumulated deficit of $339.1 million.

Beyond headline balance sheet metrics, the filing points to major valuation pressure on the company’s digital asset exposure. ZeroStack stated it recorded an $82.5 million fair value loss on digital assets during the period covered by the report. It also posted a net loss of $61.3 million for the first half of 2026. (Source: SEC Form 10-Q)

The company’s token treasury is central to the funding story. ZeroStack holds 75.1 million Zero Gravity (0G) tokens, with an aggregate recorded cost of $163.3 million and a fair value of $15.2 million as of June 30. That puts the holdings at roughly 91% below their recorded costs based on the fair value disclosed. (Source: SEC Form 10-Q)

Staking revenue and token sales: the funding hinge

ZeroStack said it relies on staking rewards and token sales to support operations. That structure creates a direct link between the company’s runway and two market variables: the price of 0G and the ability to sell tokens with sufficient liquidity.

In the first half of 2026, ZeroStack reported $3.8 million in staking revenue. The company also stated it earned about 6.6 million 0G tokens after validator commissions. During the same period, ZeroStack sold nearly 4.9 million tokens for $2.4 million to help cover operating expenses. (Source: SEC Form 10-Q)

Management said it expects cash on hand and staking reward sales to cover forecast operating costs. The filing also indicates the company could sell part of its treasury holdings if additional funds are needed. However, the key line for investors is that management could not conclude those plans would be enough to eliminate the “substantial doubt” about its ability to continue operating. (Source: SEC Form 10-Q)

Reversal from earlier liquidity guidance

The new warning is not the company’s first liquidity assessment this year. ZeroStack’s latest stance reverses what it told investors in its previous reports.

In its first-quarter Form 10-Q, ZeroStack said it expected its cash and staking rewards to be sufficient to meet working capital requirements and obligations for at least another year. (Source: SEC Form 10-Q (Q1))

In the latest filing, the company’s conclusion becomes more cautious. While ZeroStack points to operational funding coming from staking and potential token sales, the company’s inability to rule out a going-concern risk suggests the funding mix—when measured against current balance sheet realities and valuation losses—may be less reliable than earlier estimates.

Context: 0G treasury strategy and the cost-to-fair-value gap

ZeroStack’s current identity is tied to a broader pivot into 0G-centered treasury operations. The company was previously known as Flora Growth, a cannabis and CBD products firm. On Sept. 19, Flora announced a $401 million funding plan for a 0G treasury strategy. That plan included $35 million in cash and commitments, alongside more than $366 million in in-kind digital assets. The company later rebranded as ZeroStack while keeping its Nasdaq listing. (Source: Earlier coverage on Flora Growth’s 0G treasury announcement)

From an investor perspective, the most striking element in the latest report is the gap between the recorded cost of 0G holdings and their disclosed fair value. As of June 30, the tokens were booked at an aggregate cost of $163.3 million but marked at $15.2 million in fair value, implying the portfolio’s valuation has compressed sharply relative to its initial recorded basis. That gap matters because it directly affects how much capital the treasury can generate if token sales are needed to fund operating requirements—especially if liquidity is uneven or prices remain pressured. (Source: SEC Form 10-Q)

ZeroStack’s report therefore reads less like a one-off accounting update and more like an operational stress test of a staking-and-sales model. When the fair value of the underlying treasury declines so dramatically, even steady staking inflows may not translate into enough liquidity to cover burn and obligations without meaningful downside risk from continued token sales.

Going forward, investors should watch for whether ZeroStack can stabilize cash levels through staking reward performance and token sale capacity, and whether future filings confirm that the going-concern doubt diminishes or expands—an outcome that will likely depend on 0G liquidity and price rather than on the company’s ability to generate rewards alone. (Source: SEC Form 10-Q)