Nasdaq-listed crypto treasury group ZeroStack said it now has substantial doubt about its ability to remain a going concern over the next 12 months, reversing its stance from three months earlier. In a Form 10-Q filed with the SEC on Friday, the company reported $2.6 million of cash, negative working capital of $600,000 and an accumulated deficit of $339.1 million as at June 30. It recorded an $82.5 million fair value loss on digital assets and a net loss of $61.3 million for the first half of 2026.<\/p>\n\n
ZeroStack disclosed holdings of 75.1 million Zero Gravity (0G) tokens with an aggregate cost of $163.3 million and a fair value of $15.2 million at June 30, placing the position about 91% below recorded cost. The company said it funds operations through staking rewards and token sales, tying cash generation to 0G price action and trading liquidity. During the first half, it reported $3.8 million of staking revenue, earned about 6.6 million 0G tokens after validator commissions and sold nearly 4.9 million tokens for $2.4 million to cover operating expenses, while adding it could not conclude these measures would resolve the going-concern uncertainty. Formerly cannabis and CBD products firm Flora Growth, it announced on Sept. 19 funding of $401 million for a 0G treasury strategy, comprising $35 million in cash and equivalent commitments plus more than $366 million in in-kind digital assets, before rebranding as ZeroStack.<\/p>\n\n
We advise derivative traders to immediately position for a sharp downward move in ZeroStack’s stock and its native token, 0G. The company’s sudden warning about its ability to survive, driven by a 91% crash in its digital asset holdings, points to an imminent liquidity squeeze. We should target out-of-the-money put options on the equity to capture the downside as the market reacts to this distress.<\/p>\n\n
Looking at historical trends, public companies that gamble their balance sheets on single altcoins often see their stock prices plunge by 85% or more once liquidity dries up. Current 2026 crypto market data reveals that low-liquidity altcoins face severe slippage, with similar distressed sell-offs causing average price drops of 50% within days. Because ZeroStack must sell its 0G tokens to survive, any liquidation attempt will almost certainly crush the token’s remaining value.<\/p>\n\n
We recommend utilizing bear put spreads on the stock to manage the high cost of implied volatility, which is bound to surge. Derivative traders should also short 0G token futures if exchange liquidity permits, keeping tight stop-losses to protect against highly volatile dead-cat bounces. We must watch the Nasdaq listing requirements closely, as a negative working capital of $600,000 could soon trigger compliance warnings.<\/p>\n\n\n\n