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 recentโ fundraisingโค success, raising only $13.67 million in cash against an initial $100โค million target. Whileโ the company touted a $401 million treasury raise,the bulk of that figure consists of SOL tokens contributed by DeFi Advancement Corp.โ
The discrepancy casts โa shadow over Zero Gravity’s ambitious plans to build an AI-powered blockchain and raises concernsโ about its financial stability. The limited cash โraise, coupled โwith the potential for investor share sales following SEC registration, โฃcould trigger a price decline similarโข to those experienced by other publicly traded digital assetโข technology โฃ(DAT) companies like โขUpexi, Sharplink, and Bitmine Immersion – all of which saw โstockโค prices fall by at least 40% afterโ PIPE investor shares became available.
According to an investor deck โobtained by Unchained, Zero Gravity Labs officially closed itsโค fundraising period on Friday. The $13.67 million in cash was supplemented by approximately $35 million โworth of SOL from DeFi Development Corp. theโ company initially aimed to raise $100 million.
The next steps involve formalizing the business arrangement and registering the shares sold โthrough private investment in public equity (PIPE) and other placement programs with theโ 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 โฃ(UPXI), Sharplink (SBET), and Bitmine Immersion (BMNR),โ triggered โฃprice crashes of at least โ40% when they began selling theirโข shares. ZeroStack investors may similarly seek toโข exit their positions if the token or stock price continuesโ to decline.
Notably, neither theโค investor presentation nor SEC filings detail any share lockups for founders or key executives.
Representatives for ZeroStack and Zero Gravity Labsโ did not respond toโ Unchained’s requests for comment.