ZeroStack, a Nasdaq-listed company that built its operating model around crypto staking rewards, has flagged serious concerns about its ability to continue as a going concern after posting an $83 million loss. The company’s holdings of the crypto asset 0G, once a cornerstone of its balance sheet, are now valued at 91% below their recorded costs.
A business model built on quicksand
ZeroStack relied largely on staking rewards to fund its day-to-day operations, a strategy that works only as long as the staked asset retains meaningful value. With 0G now trading at a fraction of what ZeroStack originally paid for it, those staking rewards are generating revenue that barely registers against the balance sheet carnage.
An asset declining 91% from its recorded cost basis isn’t a drawdown. It’s a near-total wipeout. For context, if ZeroStack had purchased $100 million worth of 0G at cost, that position would now be worth roughly $9 million. The $83 million loss reflects the financial reality of holding through that kind of collapse.
What this means for investors
