Flora Growth spent $401 million to back Zero Gravity (0G), a blockchain project building decentralized AI infrastructure, and rebranded as ZeroStack but kept the ticker FLGC on Nasdaq.
The deal combines $35 million in cash and $366 million in digital assets (primarily 0G Token ), led by DeFi Development Corp., to expand 0G's AI infrastructure with claims of superior performance.
- Flora Growth deploys $401M treasury strategy to support 0G, rebrands to ZeroStack and holds FLGC ticker.
- 0G says it trained a 107 billion parameter model on a distributed cluster, improving performance 357 times over current distributed AI frameworks.
- Standard Chartered warns of wave of DAT company clean-up as mNAV declines, signaling industry consolidation trend.
What is Zero Gravity (0G)?
0G is a blockchain project focused on providing decentralized AI infrastructure, aiming for large-scale model training and inference on distributed clusters. According to the statement, 0G has achieved notable performance milestones.
The project aims to address the cost and transparency issues of large-scale model training. With its distributed architecture, 0G aims to provide verifiability and privacy-first for organizations, creating a platform to integrate digital treasuries to fund AI infrastructure.
How is 0G different from current distributed AI frameworks?
0G claims to have achieved 357 times higher performance than existing distributed AI frameworks and can train a 107 billion parameter model on a distributed cluster, surpassing previous milestones from some large corporations like Google.
If independently validated, this advantage reduces training costs, improves throughput, and scales more linearly. Milestones like 100 billion parameters typically require expensive infrastructure and dedicated teams, so distributed performance is key to scaling AI capabilities beyond traditional data centers.
Why did Flora Growth spend $401 million to back 0G?
The move is aimed at expanding 0G’s AI infrastructure and creating access to Capital for decentralized AI infrastructure through a treasury structure. The $401 million package includes $35 million in cash and $366 million in in-kind digital assets, primarily 0G Token .
According to the announcement, Flora Growth will rebrand as ZeroStack but maintain the ticker FLGC on Nasdaq. The company also plans to hold a portion of its treasury in SOL Token , reflecting its intention to collaborate technically with the Solana ecosystem.
Who led and participated in the fundraising deal?
DeFi Development Corp. (DFDV), treasury company Solana (SOL), led the deal, with Hexstone Capital and Carlsberg SE Asia PTE Ltd. Dao5, Abstract Ventures and Dispersion Capital also participated.
The diversified investor structure demonstrates a strategy of combining corporate finance, venture Capital , and digital asset treasury to support AI infrastructure, while aligning interests with the 0G Token and related ecosystem.
What notable terms does the agreement include?
The deal is expected to close on September 26, subject to shareholder approval. Some investors will receive pre-loaded warrants tied to the use of 0G Token in the offering.
Flora Growth retains the FLGC token, adding continuity for public investors. In parallel, holding SOL in treasury reflects 0G's strategic positioning in the Solana network, which can create technical and liquidation synergies.
“We are excited to partner with FLGC on this Capital round and look forward to fostering deeper collaboration between 0G and Solana.”
– Joseph Onorati, CEO DFDV, Friday press release, source: Newsfile Corp.
Impact on Solana and ZeroStack's Treasury Strategy
0G– Solana partnership and SOL holdings show a vision for cross- chain liquidity and liquidation , which can optimize costs and latency for decentralized AI pipelines.
Solana stands out for its high throughput and low fees, making it suitable for on-chain applications that require fast response times. When the treasury holds SOL, organizations gain additional liquidation leverage to deploy incentives, Staking, or pay network fees for AI tasks, thereby reducing friction when scaling.
How did 0G train the 107 billion parameter model?
According to 0G, the system uses a distributed cluster to train a 107 billion parameter model and achieves superior performance compared to other distributed AI frameworks, a rare milestone that usually requires multiple GPUs and deep optimization.
Training at this scale requires techniques like parallelizing data, models, and pipelines, and optimizing bandwidth/latency between nodes. If the 357x performance improvement is accurate, 0G could significantly reduce training costs, bringing large models closer to organizations without hyperscale data centers.
Progress and risks to monitor
The deal is expected to close on September 26, subject to shareholder approval. The warrant terms associated with the use of 0G Token should be monitored for conversion and dilution conditions.
Risks include volatility in the price of the assets in the treasury (0G Token , SOL), liquidation, and the ability to realize performance claims. Investors should monitor technical updates, independent audits, and the integration roadmap with Solana.
Standard Chartered warns of shock to DATs as mNAV plunges
Standard Chartered said many digital asset treasury (DAT) companies are facing pressure as mNAV across the industry falls sharply. When mNAV is below 1, the ability to issue new shares at low cost is limited, hampering asset accumulation and growth.
The bank predicts a consolidation trend, with well- Capital players like Strategy and Bitmine likely to emerge. Small DATs with depressed mNAVs are likely to become M&A targets, while the prospect of cheap funding declines.
What is mNAV and why is milestone 1 important?
mNAV is the market value of net assets. An mNAV above 1 often helps companies issue new shares efficiently, expanding their cryptocurrency holdings. An mNAV below 1 increases the cost of Capital , slowing down the accumulation cycle.
In a volatile market environment, a decline in mNAV leads to a tightening of liquidation and a weakening of treasury expansion. This prompts restructuring or mergers to optimize Capital and scale.
Who benefits from industry consolidation?
Large, well Capital , and risk-management DATs like Strategy and Bitmine are expected to have an advantage. They can acquire quality assets at attractive valuations, strengthening their positions.
In contrast, smaller DATs are under pressure to Capital or find a strategic partner. Investors should evaluate treasury discipline, cost of Capital , and transparency in mNAV reporting.
What it means for institutional investors: a transparent channel for accessing AI infrastructure
Successor CEO Daniel Reis-Faria describes the treasury strategy as a way for institutional investors to access equity tied to AI infrastructure that is transparent, verifiable, and prioritizes privacy.
The intersection of listed Capital , digital asset treasury, and distributed AI infrastructure is the new trend. If 0G proves its performance, the ZeroStack model could become a model financial-technical component for on-chain AI enterprises.
Market developments: FLGC shares increase and investor signals
Flora Growth shares rose 5% on Friday, according to Google Finance, reflecting expectations of the new strategy. However, volatility could continue until shareholder approval and the deal closes.
Investors should follow detailed disclosures on warrant terms, SOL/0G treasury governance strategies, and technical reports that substantiate 0G performance claims through independent testing.
Summary table: ZeroStack–0G vs. mNAV pressured DATs
| Criteria | ZeroStack–0G | DAT mNAV decline |
|---|---|---|
| Target | Funding decentralized AI infrastructure | Accumulate digital assets according to treasury strategy |
| Capital structure | $401 million ($35 million cash, $366 million digital assets) | Depends on mNAV and ability to issue shares |
| Technical factors | 0G claims to train 107 billion parameters, +357x performance | No focus on AI R&D |
| Main risks | Token 0G/ SOL volatility, performance verification | mNAV below 1, high cost of Capital , risk of dilution |
| Prospects | Solana Partnership, closing September 26 subject to approval | Industry consolidation, M&A increase |
Frequently Asked Questions
What is 0G?
0G is a blockchain project building a decentralized AI infrastructure, aiming at large model training and inference on distributed clusters, with claims of superior performance.
What does Flora Growth's $401 million package include?
Comprising $35 million in cash and $366 million in in-kind digital assets, primarily 0G Token . The company will rebrand as ZeroStack but keep the ticker FLGC.
When is the deal expected to close?
Expected September 26, subject to shareholder approval and closing conditions.
What effect does mNAV below 1 have on DATs?
mNAV below 1 increases the cost of Capital , limits the ability to issue new shares, slows down asset accumulation and expansion.
Which investors participated in this round?
DFDV led, with Hexstone Capital, Carlsberg SE Asia PTE Ltd; Dao5, Abstract Ventures and Dispersion Capital participating.
