Ether Machine Cancels $1.5B ETH SPAC Merger

Ether Machine terminates its merger with Dynamix Corporation, halting plans for a $1.5 billion yield-bearing Ether fund. The Ethereum treasury firm and the Nasdaq-listed SPAC mutually agreed to end the deal effective immediately, citing deteriorating market conditions.

Ether Machine announced the decision in a Saturday post on X. The firm stated that The Ether Reserve LLC and certain other parties mutually agreed to terminate the Business Combination Agreement. A US Securities and Exchange Commission filing reveals an unnamed 'Payor' must pay Dynamix $50 million within 15 days of termination.

Ether Machine first revealed plans in July last year to launch the largest yield-bearing ETH fund for institutional investors. Co-founded by former Consensys executives Andrew Keys and David Merin, the firm aimed to list on Nasdaq under ticker 'ETHM' with more than 400,000 ETH under management, worth over $1.5 billion at the time.

In September, Ether Machine raised $654 million in private financing, including 150,000 ETH from Ethereum advocate Jeffrey Berns, who joined the board. Dynamix retains until November 22, 2026, to complete another business combination or liquidate and return funds to shareholders.