A planned $1.6 billion SPAC tie-up to take crypto treasury firm The Ether Machine public has collapsed, with both parties citing “unfavorable market conditions,” the company said Friday.
The deal—announced in July 2025—would have merged The Ether Machine into Dynamix Corporation (DYNX) and listed the combined business on Nasdaq under the ticker ETHM. The Ether Machine positions itself as an Ethereum treasury and yield vehicle, generating returns through staking and decentralized-finance strategies while holding substantial ETH reserves. CoinGecko data show the firm held 496,712 ETH—worth more than $1.1 billion—at the time of the announcement.
The transaction was notable for its scale: it included a $1.5 billion fully committed PIPE financing described by the parties as the largest all-common-stock raise of its kind since 2021, plus roughly $170 million sitting in Dynamix’s SPAC trust account. The combined company was expected to launch with more than 400,000 ETH on its balance sheet, partly from a contribution by co‑founder Andrew Keys.
In a joint statement, the firms said they had “mutually agreed to terminate” the merger. Per a subsequent SEC filing, Dynamix will receive a $50 million termination payment within 15 days as part of the breakup agreement.
The collapse underscores ongoing headwinds for large crypto listings and SPAC transactions amid a challenging market backdrop. Both companies did not provide further detail on next steps; the termination means the proposed public listing and the supporting PIPE financing will not proceed as planned.
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