Nasdaq-listed crypto treasury firm ZeroStack warns that it may not be able to continue operating beyond the next year after reporting a large financial loss. In its most recent SEC filing, the company reports an $82.5 million fair value loss. The filing also indicates uncertainty about its financial position and marks a shift from a more optimistic outlook it issued roughly three months earlier.
Multiple details describe how the loss ties to declines in the value of its crypto holdings. ZeroStack’s token investments—particularly its 0G holdings—have fallen substantially below the amounts recorded in its books. One report says the 0G holdings are valued around 91% below their recorded costs, contributing to the large fair value adjustment.
The company also relies heavily on staking rewards to help fund its operations, according to coverage of the filing. Together, the reported fair value loss and the reduction in token values raise concerns about whether the company can sustain operations over the coming period, as it evaluates its financial runway and ongoing funding needs.
