Crypto treasury firm ZeroStack faces substantial doubt about its ability to continue operations due to a significant loss in digital assets and negative working capital, raising concerns for the broad
Nasdaq-listed crypto treasury company ZeroStack has issued a stark warning, reporting that it now faces substantial doubt regarding its capacity to operate over the next year. This comes after filing an $82.5 million loss on digital assets and a net loss of $61.3 million for the first half of 2026.
ZeroStack's financial troubles stem from the valuation gap between its holdings—75.1 million Zero Gravity (0G) tokens—and their recorded costs, with the latter being valued at only about 9% of the former’s original cost basis as of June 30th. The company relies on staking rewards and token sales to fund operations, making its financial health highly dependent on the performance and liquidity of these assets.
In a recent filing with the US Securities and Exchange Commission (SEC), ZeroStack disclosed $2.6 million in cash, negative working capital of $600,000, and an accumulated deficit of $339.1 million as of June 30th. Despite reporting staking revenue of $3.8 million during the first half of the year, it sold nearly 4.9 million tokens for $2.4 million to fund operating expenses.
The company’s management acknowledges that its current plans may not be sufficient to alleviate concerns over sustainability. ZeroStack expects cash and staking rewards to cover forecasted operational costs but stated they cannot guarantee these measures will ensure continued operations without selling some of their treasury holdings if necessary.
This development is significant for the broader cryptocurrency market, as it highlights potential risks associated with holding large amounts of digital assets at below-market values. The incident also underscores the importance of robust liquidity management and financial planning in crypto treasury firms.
Traders should monitor ZeroStack’s future actions closely, including any plans to sell additional tokens or adjust its staking strategy. Additionally, investors may want to keep an eye on how other similar companies navigate their own balance sheets as this issue could have ripple effects across the industry.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.