Nasdaq-listed hashish agency Flora Development has launched a $401 million treasury initiative to again Zero Gravity (0G), a blockchain challenge 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, in response 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 companies together with Dao5, Summary Ventures and Dispersion Capital.
“We’re thrilled to associate with FLGC on this fundraise and stay up for driving a deep collaboration between 0g and Solana,” stated DFDV CEO Joseph Onorati. Flora may 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 prepare 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 buyers to achieve equity-based publicity to a “clear, verifiable, and privacy-first AI infrastructure.”
Closing is predicted by September 26, pending shareholder approval. Sure buyers 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) companies are going through mounting stress as market internet asset values (mNAVs) throughout the sector have sharply declined, Commonplace Chartered stated Monday. As soon as boosted by the success of Technique’s Bitcoin accumulation mannequin, the DAT growth has stalled, exposing smaller gamers to rising dangers as their valuations sink.
An mNAV above 1 usually permits companies to challenge new shares and broaden 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 development.
The financial institution expects sector-wide consolidation, with bigger, better-funded gamers like Technique and Bitmine rising as probably winners. Smaller companies battling suppressed mNAVs could change into acquisition targets.
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