Flora Growth, a cannabis company listed on Nasdaq, announced a treasury initiative of $401 million. The goal is to support Zero Gravity (0G), a blockchain project focused on developing a decentralized AI infrastructure.

The private placement combines $35 million in cash with $366 million in digital assets, mostly in 0G tokens. As part of the deal, Flora Growth will be renamed ZeroStack but will keep its Nasdaq ticker (FLGC), as announced on Friday (19).

The investment aims to scale 0G's decentralized AI infrastructure, which already demonstrates superior capabilities compared to tech giants. The platform can train a model with 107 billion parameters in distributed clusters.

0G claims its technology is 357 times more efficient than existing distributed AI frameworks. The transaction is expected to close on September 26, subject to shareholder approval.

What is decentralized AI?

Unlike traditional Artificial Intelligence, which is dominated by tech giants that centralize data and computational power on their servers, decentralized AI operates on an open and distributed network, similar to blockchain technology.

In this model, control does not belong to a single company; instead, data processing and AI model training are shared by multiple participants around the world.

The boom of Digital Asset Treasuries (DATs), previously driven by MicroStrategy's Bitcoin accumulation model, has stalled, exposing smaller companies to high risks. The bank predicts consolidation in the sector, with larger and more capitalized players, such as MicroStrategy and Bitmine, emerging stronger.

Key investors and strategic support

The operation was led by DeFi Development Corp. (DFDV), Solana's treasury company (SOL), along with Hexstone Capital and Carlsberg SE Asia PTE Ltd. The investment also included funds such as Dao5, Abstract Ventures, and Dispersion Capital.

This move comes as Digital Asset Treasury (DAT) companies face increasing pressure. A report from Standard Chartered points to a decline in the net asset value (mNAV) of these companies.

With information from Tradingview