Flora Growth launches $401 million treasury initiative to support Zero Gravity (0G), a blockchain project for decentralized AI. Private placement deal includes $35 million in cash and $366 million in digital assets. Solana treasury company DFDV leads the deal, with Flora holding treasury in SOL tokens. FLGC shares surge 5% on Friday.

Zero Gravity aims to scale AI infrastructure by training a 107B-parameter model using distributed clusters. 0G claims 357x efficiency improvement over existing AI frameworks. Incoming CEO sees treasury as way for institutional investors to gain equity-based exposure to innovative AI infrastructure. Closing expected by September 26.

Standard Chartered warns of shakeout in digital asset treasury (DAT) sector as market net asset values (mNAVs) collapse. Smaller players facing risks with sinking valuations. Larger firms like Strategy and Bitmine expected to emerge as winners with sector-wide consolidation. Access to low-cost capital drying up for DATs trading below mNAV threshold.

Read more at Cointelegraph: Flora Growth Launches $401M Treasury to Back 0G AI Blockchain