ZeroStack, a Nasdaq-listed crypto treasury firm, warned Monday that it faces survival risk after an $82.5 million loss. The company's 0G holdings are now valued 91% below their recorded cost, and its operations depend heavily on staking rewards.
The 91% gap
The loss stems from a massive write-down on ZeroStack's 0G token position. The firm recorded the tokens at a cost that is now 91% higher than their current market value. That $82.5 million hole is more than a paper loss — it directly undermines the company's balance sheet and its ability to fund day-to-day operations.
Staking as lifeline
ZeroStack relies on staking rewards to cover its expenses. The model works when the underlying tokens hold value. But with 0G down 91% from cost, the staking yield — calculated on a smaller base — may no longer be enough to keep the lights on. The company did not disclose its current staking income or how long it can sustain operations at the current token price.
What survival means
The warning is unusually direct for a publicly traded firm. ZeroStack did not announce any specific plan alongside the warning — no capital raise, no asset sale, no restructuring. The company's reliance on staking rewards, now threatened by the loss, leaves it with few obvious options. Investors will be watching for the next quarterly filing to see if the company can find a way to close the gap.
