Nasdaq-listed hashish agency Flora Growth has launched a $401 million treasury initiative to again Zero Gravity (0G), a blockchain venture targeted on powering decentralized AI infrastructure.
The transfer comes by way of a non-public placement deal combining $35 million in money with $366 million in in-kind digital belongings, 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 Development Corp. (DFDV) led the deal, alongside Hexstone Capital and Carlsberg SE Asia PTE Ltd, with participation from companies together with Dao5, Abstract Ventures and Dispersion Capital.
“We’re thrilled to associate with FLGC on this fundraise and look ahead to driving a deep collaboration between 0g and Solana,” mentioned DFDV CEO Joseph Onorati. Flora can 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 practice 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 current distributed AI frameworks.
Incoming CEO Daniel Reis-Faria described the treasury transfer as a means for institutional buyers to achieve equity-based publicity to a “clear, verifiable, and privacy-first AI infrastructure.”
Closing is anticipated by September 26, pending shareholder approval. Certain buyers will obtain pre-funded warrants tied to the usage of 0G tokens within the providing.
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Standard Chartered warns of DAT shakeout as mNAVs collapse
Digital asset treasury (DAT) companies are going through mounting stress as market web asset values (mNAVs) throughout the sector have sharply declined, Standard Chartered mentioned Monday. Once boosted by the success of Strategy’s Bitcoin accumulation mannequin, the DAT increase has stalled, exposing smaller gamers to rising dangers as their valuations sink.
An mNAV above 1 sometimes permits companies to subject new shares and increase crypto holdings. However, with many DATs now buying and selling under that threshold, entry to low-cost capital has dried up, stalling additional accumulation and development.
The financial institution expects sector-wide consolidation, with bigger, better-funded gamers like Strategy and Bitmine rising as probably winners. Smaller companies scuffling with suppressed mNAVs could grow to be acquisition targets.
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