Flora Growth Rebrands, Backs 0G AI Blockchain With $401M Treasury
Flora Growth Invests $401M in 0G Blockchain, Rebrands as ZeroStack
Flora Growth (FLGC), a Nasdaq-listed cannabis company, is making a significant pivot into the AI space. The company has announced a $401 million treasury initiative to back Zero Gravity (0G), a blockchain project designed to power decentralized AI infrastructure.
The funding comprises $35 million in cash and $366 million in digital assets, primarily in 0G tokens. As part of this strategic shift, Flora Growth will rebrand as ZeroStack, while maintaining its existing Nasdaq ticker, FLGC.
The investment round was led by DeFi Development Corp. (DFDV), a Solana (SOL) treasury company, along with Hexstone Capital and Carlsberg SE Asia PTE Ltd. Other participants included Dao5, Abstract Ventures, and Dispersion Capital. Flora will also hold a portion of its treasury in SOL tokens.
Joseph Onorati, CEO of DFDV, stated, “We’re thrilled to partner with FLGC on this fundraise and look forward to driving a deep collaboration between 0g and Solana.”
Zero Gravity's AI Model and Institutional Investment
The investment is intended to scale 0G's AI infrastructure, which is already capable of training a 107 billion parameter AI model using distributed clusters. According to 0G, this represents a 357x efficiency improvement over existing distributed AI frameworks. The company hopes to create a transparent and privacy-focused AI infrastructure.
Daniel Reis-Faria, incoming CEO, sees this treasury move as an opportunity for institutional investors to gain equity-based exposure to this emerging field.
The deal's closing is anticipated by September 26, pending shareholder approval. Select investors will receive pre-funded warrants related to the use of 0G tokens.
Challenges for Digital Asset Treasuries
The broader digital asset treasury (DAT) landscape faces increasing challenges, according to a recent report by Standard Chartered. Market net asset values (mNAVs) across the sector have declined, creating pressure on smaller firms.
An mNAV above 1 typically allows firms to issue new shares and expand their crypto holdings. However, many DATs now trade below this threshold, limiting their access to capital and hindering further growth.
Standard Chartered anticipates sector consolidation, with larger, well-funded players like Strategy and Bitmine potentially emerging as dominant forces. Smaller firms with suppressed mNAVs may become acquisition targets.