$1.6 billion Ether Machine SPAC deal collapses over unfavorable market

A planned $1.6 billion SPAC merger between Dynamix Corporation (DYNX) and crypto firm The Ether Machine has been terminated, over unfavorable market conditions, The Ether Machine said Friday.

The agreement, first unveiled in July 2025, aimed to take ether (ETH) treasury firm The Ether Machine public on Nasdaq under the ticker ETHM.

The company is designed to act as an Ethereum treasury and yield vehicle, generating returns through staking and decentralized finance strategies while holding large reserves of ether. It currently holds 496,712 ETH worth more than $1.1 billion, according to CoinGecko data.

Initially, the deal stood out for its scale. It included a $1.5 billion fully committed PIPE financing deal, described as the largest all-common-stock raise of its kind since 2021, alongside roughly $170 million held in Dynamix’s trust account.

The combined company was expected to launch with more than 400,000 ETH on its balance sheet, backed in part by a contribution from co-founder Andrew Keys.

The merger has now been called off due to what the companies described as unfavorable market conditions. According to The Ether Machine, the two firms “mutually agreed to terminate” the deal. As part of the termination agreement, Dynamix will receive a $50 million payment within 15 days, according to a filing with the U.S. Securities and Exchange Commission (SEC).