Zero Gravity Labs’ $401M Treasury Raise Revealed as Primarily $13.7M in Cash
Zero Gravity Labs, the company behind the AI-focused blockchain ZeroStack, considerably overstated its recent fundraising success, raising only $13.67 million in cash against an initial $100 million target. While the company touted a $401 million treasury raise,the bulk of that figure consists of SOL tokens contributed by DeFi Advancement Corp.
The discrepancy casts a shadow over Zero Gravity’s ambitious plans to build an AI-powered blockchain and raises concerns about its financial stability. The limited cash raise, coupled with the potential for investor share sales following SEC registration, could trigger a price decline similar to those experienced by other publicly traded digital asset technology (DAT) companies like Upexi, Sharplink, and Bitmine Immersion – all of which saw stock prices fall by at least 40% after PIPE investor shares became available.
According to an investor deck obtained by Unchained, Zero Gravity Labs officially closed its fundraising period on Friday. The $13.67 million in cash was supplemented by approximately $35 million worth of SOL from DeFi Development Corp. the company initially aimed to raise $100 million.
The next steps involve formalizing the business arrangement and registering the shares sold through private investment in public equity (PIPE) and other placement programs with the Securities and Exchange Commission (SEC), likely via an S-3 filing.This registration will allow investors to sell their shares on the open market.
Historical precedent suggests a negative market reaction. PIPE investors in previous DATs, such as Upexi (UPXI), Sharplink (SBET), and Bitmine Immersion (BMNR), triggered price crashes of at least 40% when they began selling their shares. ZeroStack investors may similarly seek to exit their positions if the token or stock price continues to decline.
Notably, neither the investor presentation nor SEC filings detail any share lockups for founders or key executives.
Representatives for ZeroStack and Zero Gravity Labs did not respond to Unchained’s requests for comment.
