ZeroStack Faces Survival Challenge After Posting $82.5 Million Loss

A crypto treasury company listed on Nasdaq, ZeroStack, issued a warning that it may wind down operations within the next year, reversing its previous outlook from three months ago. According to the 10-Q form filed by ZeroStack with the US Securities and Exchange Commission (SEC) last Friday, the firm held $2.6 million (roughly Rs. 24.79 crore) in cash, had negative working capital amounting to $600,000 (roughly Rs. 5.7 crore), and accumulated losses of $339.1 million (roughly Rs. 3,234 crore) up to June 30. The company also revealed a fair value loss of $82.5 million (roughly Rs. 787 crore) and a net loss of $61.3 million (roughly Rs. 584 crore) during the first half of 2026.

SEC Filing Reveals Sharp Decline in Value of 0G Token Holdings

As per the form filed by ZeroStack, as of June 30, the 75.1 million Zero Gravity (0G) tokens have a total cost of $163.3 million (roughly Rs. 1,557 crore) and a fair value of $15.2 million (roughly Rs. 145 crore). In other words, the market value of the company's investments is 91 percent lower than their book value. ZeroStack operates based on the revenue from staking rewards and token sales. Hence, its financial situation depends on 0G's price and liquidity.

According to ZeroStack, the company generated $3.8 million (roughly Rs. 36.2 crore) from staking during the first half of the year, earning around 6.6 million 0G tokens after commissions were paid to the validators. The company was able to sell almost 4.9 million tokens, generating $2.4 million (roughly Rs. 22.8 crore). The company hoped that the cash and staking rewards sale would be enough to meet the operational expenses of the business, as they had stated that they may be able to sell off their treasury assets if required. However, the management could not confirm that this would resolve the issue.

This recent evaluation contradicts the prior two evaluations issued by the firm. According to ZeroStack's report for its first quarter, it has enough money and staking rewards to cover its working capital needs for at least one more year.

The past 3 months have seen plenty of crypto-based companies closing shop. Firstly, in May, DeFi protocols such as DeFi mobile “superapp” Legend and Solana-based DeFi yield protocol Carrot were amongst the few to throw in the towel. Next, in June, Loopring, the first zero-knowledge rollup solution from Ethereum, shut down its decentralised exchange and AMM. Furthermore, last month, BitMart also announced that it will shut down its trading facilities by August 26, and its operation will come to a close on January 31, 2027. BitMart has ceased taking any new users or deposits, and futures trading has entered reduced-only mode and closed spot order books.