Nasdaq-listed hashish agency Flora Progress has launched a $401 million treasury initiative to again Zero Gravity (0G), a blockchain challenge centered on powering decentralized AI infrastructure.
The transfer comes by way of a personal placement deal combining $35 million in money with $366 million in in-kind digital property, primarily denominated in 0G tokens. As a part of the transaction, Flora will rebrand as ZeroStack whereas retaining its Nasdaq ticker, FLGC, in accordance to a Friday announcement.
Solana (SOL) treasury firm DeFi Growth Corp. (DFDV) led the deal, alongside Hexstone Capital and Carlsberg SE Asia PTE Ltd, with participation from companies together with Dao5, Summary Ventures and Dispersion Capital.
“We’re thrilled to accomplice with FLGC on this fundraise and look ahead to driving a deep collaboration between 0g and Solana,” stated DFDV CEO Joseph Onorati. Flora may even maintain a portion of its treasury in SOL tokens.
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Zero Gravity trains 107B-parameter AI mannequin
The funding goals to scale 0G’s AI infrastructure, which may already prepare a 107 billion parameter mannequin utilizing distributed clusters, a feat that surpasses earlier benchmarks from tech giants like Google. 0G claims a 357x effectivity enchancment over present distributed AI frameworks.
Incoming CEO Daniel Reis-Faria described the treasury transfer as a method for institutional traders to realize equity-based publicity to a “clear, verifiable, and privacy-first AI infrastructure.”
Closing is anticipated by September 26, pending shareholder approval. Sure traders will obtain pre-funded warrants tied to the usage of 0G tokens within the providing.
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Customary Chartered warns of DAT shakeout as mNAVs collapse
Digital asset treasury (DAT) companies are dealing with mounting stress as market web asset values (mNAVs) throughout the sector have sharply declined, Customary Chartered stated Monday. As soon as boosted by the success of Technique’s Bitcoin accumulation mannequin, the DAT increase has stalled, exposing smaller gamers to rising dangers as their valuations sink.
An mNAV above 1 usually allows companies to difficulty new shares and increase crypto holdings. Nevertheless, with many DATs now buying and selling under that threshold, entry to low-cost capital has dried up, stalling additional accumulation and progress.
The financial institution expects sector-wide consolidation, with bigger, better-funded gamers like Technique and Bitmine rising as seemingly winners. Smaller companies fighting suppressed mNAVs might change into acquisition targets.
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