ZeroStack, a Nasdaq-listed crypto treasury company, has warned that there is substantial doubt about its ability to continue operating over the next 12 months, according to its latest Form 10-Q filing with the US Securities and Exchange Commission.

The filing shows a company under pressure from heavy digital asset losses and limited liquidity. As of June 30, ZeroStack reported $2.6 million in cash, negative working capital of $600,000 and an accumulated deficit of $339.1 million.

Losses tied to token holdings

For the first half of 2026, ZeroStack recorded an $82.5 million fair value loss on digital assets and a net loss of $61.3 million. The filing points in particular to the gap between the book cost of its 0G token holdings and their current value.

ZeroStack said its 0G tokens carried a recorded cost of $163.3 million, while their fair value stood at just $15.2 million as of June 30. That implies the holdings were valued at roughly 91% below recorded cost at the end of the period.

Operations depend on staking and token sales

The company said it funds its operations primarily through staking rewards and sales of tokens from its treasury. That means its ability to generate cash is closely tied to the market price and liquidity of 0G.

During the first six months of the year, ZeroStack reported about $3.8 million in staking revenue. After validator commissions, it said it had received roughly 6.6 million 0G tokens and sold nearly 4.9 million of them for $2.4 million to pay operating expenses.

Management outlines limited funding options

In the filing, management said available cash and proceeds from selling staking rewards could be used to meet expected costs. It also said the company may sell some of its treasury holdings if additional funds are needed.

Even so, ZeroStack stated that these measures may not be sufficient to remove the uncertainty around its ability to continue as a going concern. The warning reflects both the company’s current cash position and its dependence on an asset whose value and tradability can fluctuate.

What comes next

The immediate next step is whether ZeroStack can sustain operations using existing cash, staking income and any additional token sales. Based on the filing, that outcome depends largely on conditions in the 0G market, including price and liquidity.

For now, the company’s own disclosure is the clearest confirmed signal: management believes the current funding plan may not fully resolve the risk to operations over the coming year.

Source: cointelegraph.com