Nasdaq-listed hashish agency Flora Development has launched a $401 million treasury initiative to again Zero Gravity (0G), a blockchain venture centered on powering decentralized AI infrastructure.
The transfer comes by means 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, according to a Friday announcement.
Solana (SOL) treasury firm DeFi Improvement Corp. (DFDV) led the deal, alongside Hexstone Capital and Carlsberg SE Asia PTE Ltd, with participation from corporations together with Dao5, Summary Ventures and Dispersion Capital.
“We’re thrilled to companion with FLGC on this fundraise and sit up for driving a deep collaboration between 0g and Solana,” mentioned DFDV CEO Joseph Onorati. Flora may also 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 present distributed AI frameworks.
Incoming CEO Daniel Reis-Faria described the treasury transfer as a approach 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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Commonplace Chartered warns of DAT shakeout as mNAVs collapse
Digital asset treasury (DAT) corporations are facing mounting pressure as market web asset values (mNAVs) throughout the sector have sharply declined, Commonplace Chartered mentioned 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 corporations to concern new shares and increase crypto holdings. Nonetheless, 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 probably winners. Smaller corporations battling suppressed mNAVs might turn into acquisition targets.
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