The Nasdaq-listed cannabis company Flora Growth has initiated a $401 million treasury program to support Zero Gravity (0G), a blockchain initiative aimed at enabling decentralized AI infrastructure.
This initiative is part of a private placement agreement that combines $35 million in cash with $366 million in digital assets, primarily in 0G tokens. Flora will rebrand itself as ZeroStack, while retaining its Nasdaq ticker, FLGC, according to a recent announcement.
The deal was spearheaded by Solana (SOL) treasury organization DeFi Development Corp. (DFDV), alongside Hexstone Capital and Carlsberg SE Asia PTE Ltd, with participation from firms such as Dao5, Abstract Ventures, and Dispersion Capital.
“Partnering with FLGC on this fundraise is exciting, and we look forward to fostering a strong collaboration between 0G and Solana,” stated DFDV CEO Joseph Onorati. Flora plans to hold part of its treasury in SOL tokens as well.
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Zero Gravity trains 107B-parameter AI model
The investment seeks to enhance 0G’s AI infrastructure, which is capable of training a 107 billion parameter model using distributed clusters, exceeding previous records set by tech powerhouses like Google. 0G boasts a 357x efficiency improvement over current distributed AI frameworks.
Incoming CEO Daniel Reis-Faria characterized the treasury initiative as an opportunity for institutional investors to gain equity-based exposure to a “transparent, verifiable, and privacy-first AI infrastructure.”
Closing is anticipated by September 26, subject to shareholder approval. Certain investors will receive pre-funded warrants related to the use of 0G tokens in this offering.
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Standard Chartered warns of DAT shakeout as mNAVs plummet
Digital asset treasury (DAT) firms are experiencing increasing pressure as market net asset values (mNAVs) across the sector have significantly dropped, according to Standard Chartered’s recent report. Once fueled by the success of Strategy’s Bitcoin accumulation model, the DAT surge has come to a halt, exposing smaller entities to heightened risks as their valuations fall.
An mNAV above 1 generally allows firms to issue new shares and enhance crypto holdings. However, many DATs are now trading below that threshold, leading to a blockade on low-cost capital access, hindering further accumulation and growth.
The bank anticipates sector-wide consolidation, with larger, better-capitalized companies like Strategy and Bitmine likely to emerge as winners. Smaller firms facing subdued mNAVs may become targets for acquisition.
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