Zero Gravity Labs has raised red flags following the creation of a new Digital Asset Treasury (DAT) company intending to buy OG tokens. The NASDAQ-listed Flora Growth Corp. announced it would build a DAT based on OG tokens, the native assets of the brand-new Zero Gravity Chain.
Altcoin treasury companies are still few, with most buyers focusing on ETH and Solana. In the past two weeks, NASDAQ-listed Flora Growth Corp. (FLGC) announced plans to raise $401M and buy an obscure asset, the new OG token. OG launched a few days ago, following an airdrop, and has already slid from a peak of $6 to $2.41. Later, the token recovered to around $2.70. FLCG shares traded near a one-month low of $18.33.
OG tokens belonged to the recently launched Zero Gravity Blockchain. This was the first red flag for the new DAT company – while Flora Growth Corp. filed its plans on September 19 in an 8-K form, the actual chain launched two days later, on September 21.
Flora Growth Corp. then announced plans to rename itself to ZeroStack and start stacking OG tokens as its main reserve. The second red flag was that OG tokens were barely traded, and the company built its entire DAT strategy on non-existent valuations.
Did ZeroStack really raise $401M for the Zero Gravity Labs OG token?
On social media, Flora Growth Corp. (a.k.a. ZeroStack) raised a discussion about the reality of the $401M raise. The amount of funding is much larger, even compared to DAT for well-established coins and tokens.
A brief analysis showed ZeroStack did not really attract fresh liquidity.
OG Labs announced that it had raised $401M, but @mdudas point is valid, the actual fresh capital inflow was only $13.7M.
Actual Breakdown of the $401M Claim
• Fresh external cash: $13.66M (3.4%) — direct investments from Dao5, Abstract Ventures, etc.
• Solana tokens: $22.88M… https://t.co/QcXMVJu6jZ— ETH_APPLE🇰🇷 (@eth_apple) September 30, 2025
A breakdown of the fundraising structure paints a different picture. The newly announced DAT company attracted just $13.5M in fresh capital from its partners, including Dao5, Abstract ventures, Dispersion Capital, Blockchain Builders Fund, and Salt.
DeFi Def Corp., one of the leading Solana treasury companies, further donated $22.88M in SOL tokens through its own private placement with an 8% coupon. The SOL will be included in the company’s balance sheet and yield passive income based on the token’s existing technology.
Zero Gravity Labs Inc., the for-profit development firm behind the Zero Gravity blockchain, added $150M to the investment in the form of a convertible note.
The DAT also raised another $215.3M on paper, for 8,546,955 pre-funded warrants at $25.19 each. The $215M warrant contribution is led by Daniel Reis Faria, CEO and founder of the ZeroStack DAT. Per the recent filing, ‘Mr. Reis-Faria participated as an investor in the Token Private Placement in which he contributed 50,000,000 Tokens to the Company, with such Tokens, when converted into cash, have an aggregate value of approximately US$150,000,000, based upon the agreed upon value of US$3 per Token, and was issued 5,954,743 Token Pre-funded Warrants at a purchase price of US$25.1899 per Pre-funded Warrant having an approximate dollar value of US$149,999,977.‘
For the sake of the cash investment from warrant buyers, the price of $3 per OG share was already part of the company’s 8-k filing. The OG valuation was based on independent research, and that value was used throughout the structuring of the DAT raise.
The rationale for this price is the agreement with investors. Per the filing, ‘The purchase price of each Token Pre-funded Warrant shall be paid in the form of Tokens, with each token having a deemed value of US$3.00 in accordance with the valuation mutually agreed upon by the Company and the Token Investors.‘ Following the launch of OG, the token traded around $2.77.
Altcoin treasuries seek to tap stock market liquidity for sluggish tokens
As Cryptopolitan previously reported, altcoin treasuries gained speed, often choosing PIPE funding or reverse mergers with NASDAQ-listed companies. It is possible that some of the backers of those companies attempted to monetize already existing token reserves from treasuries or other holdings that cannot be sold on any market.
Using the tokens as a reserve, however, meant the holders could still access liquidity by selling shares. This would tank the share price, but the initial enthusiasm for DAT companies would allow investors to sell quickly. While the tokens remained locked, the token owners were not obliged to hold the shares.
ZeroStack, however, is the first company to use a brand-new token as a treasury asset.
