ZeroStack Faces Going Concern Doubt Despite Staking Reward Plan

ZeroStack, whose digital-asset treasury is overwhelmingly composed of the AI-focused 0G token, said it expects to fund operations mainly by selling staking rewards. Management, however, could not conclude that its plans would alleviate substantial doubt about the company's ability to continue as a going concern.

The company's Form 10-Q, filed July 31 for the quarter ended June 30, reported $2.6 million in cash, negative working capital of $600,000, a $339.1 million accumulated deficit and a $61.3 million net loss for the first half of 2026. It also recorded an $82.5 million loss from remeasuring digital assets at fair value. That markdown was an accounting loss, not a realized cash loss.

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

Reward sales underpin the liquidity plan

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.

Management said the company expects to fund operations primarily by monetizing staking rewards and may sell some underlying token holdings if needed. ZeroStack said its staked tokens remain in company wallets and can be withdrawn at any time, but that does not establish immediate cash availability. The filing also 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, rather than a declaration that ZeroStack is insolvent.

A March 31 Form 8-K described 142,232,948 0G tokens originally contributed to Texas Blocker. After ZeroStack's acquisition of the company closed on July 20, the 10-Q's subsequent-events note said ZeroStack received 147,990,763 tokens from Texas Blocker and held 223,773,990 tokens in total, valued at about $40.5 million using the July 27 closing price.

The contributed and acquired counts differ by 5,757,815 tokens. Texas Blocker was permitted to stake its holdings before the acquisition closed, but the public disclosures do not explicitly attribute that entire difference to staking rewards.

The transaction also carried related-party ties. Texas Blocker was formed by ZeroStack CEO Daniel Reis-Faria and CFO Dany Vaiman, and the filing says Zero Gravity Labs owned 51% of it at June 30. ZeroStack Executive Chairman Michael Heinrich was Zero Gravity's CEO when the ZeroStack transaction closed.

0G traded near 15 cents on Aug. 1, with roughly $6.8 million to $7.5 million in rolling 24-hour volume.