ZeroStack's $163M Crypto Stash Crashes to $15M, Staking Rewards Key

ZeroStack, a company whose digital-asset treasury is almost entirely in the AI-focused 0G token, filed a July 31 quarterly report that put its going-concern status in doubt. The Form 10-Q for the period ended June 30 showed $2.6 million in cash, negative working capital of $600,000, an accumulated deficit of $339.1 million and a first-half net loss of $61.3 million. An $82.5 million loss from remeasuring digital assets at fair value added to the red ink, though that was an accounting charge, not a realized cash loss.

At June 30, ZeroStack held 75.1 million 0G tokens with a recorded cost of $163.33 million and a fair value of $15.17 million. A small Bitcoin position brought total digital assets to a $163.43 million cost and $15.21 million fair value. Those figures are a snapshot from June 30 and predate a much larger 0G acquisition that closed in July.

Management said the company expects to fund operations primarily by monetizing staking rewards and may sell some underlying token holdings if needed. ZeroStack recognized $3.78 million in digital-asset revenue from 6.62 million 0G tokens earned through staking during the first half, net of 1% or 2% validator commissions. It sold 4.94 million tokens from its rewards wallet for $2.4 million in proceeds, while using $2.47 million in cash for operating activities over the same period.

The filing warns that rewards can decline or disappear and that sales depend on token prices and market conditions. The filing therefore does not establish that this mechanism can fund operations for the year following issuance of the financial statements. Yet its precise warning is substantial going-concern doubt, not a declaration of insolvency.