Nasdaq-listed crypto treasury company ZeroStack has warned that substantial doubt exists about its ability to continue operating over the next 12 months, reversing the conclusion it reached in its previous quarterly filings. According to a Form 10-Q filed with the U.S. Securities and Exchange Commission on July 31, the company reported $2.6 million in cash while its 75.1 million 0G token treasury was valued about 91% below its acquisition cost as of June 30. Management said existing cash, proceeds from staking rewards, and possible sales of treasury assets are expected to support operating costs, but concluded it could not determine that those measures would remove the substantial doubt surrounding its ability to continue operating for the next year.
During the first half of 2026, ZeroStack recorded an $82.5 million fair value loss on digital assets and a net loss of $61.3 million, according to the filing. The company reported negative working capital of $600,000 and an accumulated deficit of $339.1 million as of June 30. The company's 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 $3.78 million in digital-asset revenue from 6.62 million 0G tokens earned through staking, after earning about 6.6 million 0G tokens following validator commissions, while selling nearly 4.94 million tokens for $2.4 million to cover operating expenses.
The filing showed ZeroStack held 75.1 million Zero Gravity (0G) tokens with an aggregate acquisition cost of $163.33 million. Their fair value had fallen to $15.17 million by June 30, leaving the treasury valued about 91% below its recorded cost. Including a small Bitcoin position, total digital assets had a $163.43 million cost basis and $15.21 million fair value. 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. 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.
The filing revealed a significant acquisition that occurred after the June 30 snapshot period, with ZeroStack acquiring 147,990,763 0G tokens from Texas Blocker on July 20. This acquisition, combined with the original 142,232,948 tokens contributed to Texas Blocker, brought ZeroStack's total 0G holdings to 223.77 million tokens valued at approximately $40.5 million using the July 27 closing price. The transaction carried related-party ties, as Texas Blocker was formed by ZeroStack CEO Daniel Reis-Faria and CFO Dany Vaiman, with Zero Gravity Labs owning 51% of Texas Blocker at June 30. The filing warns that rewards can decline or disappear and that sales depend on token prices and market conditions, which does not establish immediate cash availability for operations. The company's staked tokens remain in company wallets and can be withdrawn at any time, but the filing does not establish immediate cash availability.
The company's financial disclosure comes amid challenging market conditions, with 0G trading near 15 cents on August 1 and $6.8 million to $7.5 million in 24-hour volume. Management expects to fund operations primarily by monetizing staking rewards and may sell some underlying token holdings if needed, but the filing warns that this mechanism cannot fund operations for the year following issuance of the financial statements. The company's financial position reflects the broader challenges facing digital asset companies, with regulatory uncertainty and market-dependent liquidity creating ongoing concerns for token-focused treasury operations. The filing's precise warning is substantial going-concern doubt, rather than a declaration that ZeroStack is insolvent, highlighting the ongoing uncertainty about the company's ability to continue operations.
