ZeroStack Flags Going Concern Risk After 0G Token Value Collapses

Crypto treasury company ZeroStack has warned that it could be forced to cease operations within a year. As of the end of June, the firm held just $2.6 million in cash, with negative working capital of $0.6 million, and reported a six-month net loss of $61.3 million.

The primary driver was the severe depreciation of Zero Gravity (0G) tokens, which underpin the company's treasury strategy. The fair value of these tokens collapsed from $163.3 million to $15.2 million.

To stay afloat, ZeroStack aims to finance its operations by selling staking rewards and, if needed, a portion of its core assets. However, the firm expressed uncertainty over whether this will be adequate to sustain the business.