Flora Growth Commits $401M to Support 0G's Decentralized AI Blockchain
Flora Growth, a Nasdaq-listed cannabis firm, announced a significant move to back Zero Gravity (0G), a blockchain project focused on decentralized artificial intelligence infrastructure. The company has committed $401 million through a treasury initiative aimed at scaling 0G's capabilities.
Deal Structure and Rebranding
The treasury package includes $35 million in cash and $366 million in in-kind digital assets, primarily in 0G tokens. The company will rebrand from Flora Growth to ZeroStack but will keep its Nasdaq ticker symbol, FLGC. The transaction, revealed in a Friday statement, is expected to close by September 26, pending shareholder approval.
Collaborators and Strategic Objectives
The private placement was led by DeFi Development Corp. (DFDV), a Solana treasury company, alongside Hexstone Capital and Carlsberg SE Asia PTE Ltd. Other participants include Dao5, Abstract Ventures, and Dispersion Capital. Flora will also hold part of its treasury in SOL tokens, signaling a collaborative approach between 0G and the Solana ecosystem.
DFDV CEO Joseph Onorati highlighted the strategic partnership as a way to deepen collaboration between 0G and Solana. Incoming ZeroStack CEO Daniel Reis-Faria described the treasury move as an opportunity for institutional investors to gain equity exposure to what is described as transparent and privacy-focused AI infrastructure.
0G's Technical Achievements
0G claims its infrastructure can train a 107 billion parameter model using distributed clusters, reportedly achieving a 357-fold efficiency increase over existing distributed AI frameworks. This advancement exceeds several benchmarks previously set by major technology companies.
Market Outlook for Digital Asset Treasury Firms
The announcement comes as digital asset treasury (DAT) companies face sector-wide challenges. According to Standard Chartered, many DATs now trade below market net asset value (mNAV), limiting their ability to issue new shares or expand crypto holdings. The report expects industry consolidation, with larger firms likely to gain further dominance and smaller players potentially becoming acquisition targets.
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