ZeroStack (ZSTK) stock was up 439.1% on Wednesday after the decentralized AI asset company announced a crypto deal. The company said that it has agreed to receive $1 billion worth of Memecore tokens from Puple AI and Blockcat in exchange for ZeroStack shares and warrants. The deal includes 3.5 million shares and pre-funded warrants for up to 36.2 million more shares. The warrants are priced at $25.19 per share, which ZeroStack said is more than 12 times its recent market price.

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The tokens include about 925.9 million $M tokens, valued at $1.08 each. Shares tied to the warrants cannot be issued until ZeroStack shareholders approve the deal under Nasdaq rules. Those shares will also face a lock-up period of up to 10 years after the deal closes. The terms give ZeroStack a much larger position in the Memecore ecosystem.

ZeroStack said the deal will help build its role in the distributed AI market. The company also sees a chance to link its current 0G holdings with the Memecore network. That could give ZeroStack a wider role across digital assets and decentralized AI. Rudy Rong, a Memecore principal, will also become President of ZeroStack as part of the deal.

"This transaction represents a defining milestone not only for ZeroStack, but for the broader digital asset industry," said Daniel Reis-Faria, CEO of ZeroStack. Rong said ZeroStack can help connect the two groups while creating new chances for growth across the blockchain sector.

ZeroStack Stock Movement Today

ZeroStack stock was up 439.1% on Wednesday, extending a 59.74% year-to-date rally. However, the stock was still down 90.9% over the past 12 months.

With today's news came heavy trading of ZSTK stock, as more than 4.75 million shares changed hands. For comparison, the company's three-month average daily trading volume was about 79,000 shares.

Is ZeroStack Stock a Buy, Sell, or Hold?

Turning to Wall Street, ZeroStack lacks traditional analyst coverage. Fortunately, TipRanks' AI analyst Spark has it covered. Using the OpenAI – 5.2 model, Spark rates ZSTK stock as Underperform with a $1.50 price target. It cites "very weak financial performance," including "steep revenue decline, negative gross profit, and large ongoing losses with negative operating/free cash flow" as reasons for this stance. (See ZSTK Stock Forecast)