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ZeroStack warns it may need token staking rewards to keep running

ZeroStack reported $2.6 million in cash at June 30, alongside negative working capital of $600,000, and said it cannot conclude its plans will remove substantial going concern doubt.

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ZeroStack said it expects to fund its operations mainly by selling staking rewards tied to its largely 0G token treasury, but management could not conclude that the approach would alleviate substantial doubt about whether the company can continue as a going concern, according to its Form 10-Q filed July 31 for the quarter ended June 30. In the filing, the company reported $2.6 million in cash, negative working capital of $600,000, and an accumulated deficit of $339.1 million. It also posted a $61.3 million net loss for the first half of 2026 and recorded an $82.5 million loss from remeasuring digital assets at fair value, which management described as an accounting loss rather than a realized cash loss. ZeroStack said it held 75.1 million 0G tokens at June 30, carried at a $163.33 million cost and $15.17 million fair value. It also recorded total digital assets of $163.43 million at cost and $15.21 million at fair value, with a small Bitcoin position included. For the first half of 2026, the company recognized $3.78 million in digital asset revenue from 6.62 million 0G tokens earned through staking, net of validator commissions. ZeroStack sold 4.94 million tokens from its rewards wallet for $2.4 million in proceeds, and it said it used $2.47 million in cash for operating activities over the same period, while also noting that staking rewards can decline or disappear depending on token prices and market conditions.

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