The Ether Machine, a crypto firm that holds over $1 billion in ether, has walked away from a planned $1.6 billion merger with Dynamix Corporation. The deal, which would have taken the company public on Nasdaq, was called off on April 8, 2026.
$1.6 BILLION SPAC MERGER PLAN TERMINATED
The $1.6B SPAC deal between Dynamix Corp (DYNX) and The Ether Machine has been scrapped due to unfavorable market conditions.
Dynamix will receive a $50M termination payment. The Ether Machine still holds over $1B in ETH in its… pic.twitter.com/kzilyV5Nhh
— Coin Bureau (@coinbureau) April 11, 2026
The two companies said they “mutually agreed to terminate” the Business Combination Agreement. They pointed to unfavorable market conditions as the reason.
The merger was first announced in July 2025. The plan was for The Ether Machine to go public under the ticker ETHM through a merger with Dynamix, a Nasdaq-listed SPAC.
The Ether Machine was built to act as an Ethereum treasury and yield vehicle. It holds 496,712 ETH, worth more than $1.1 billion, and generates returns through staking and decentralized finance strategies.
The deal had been notable for its size. It included a $1.5 billion fully committed PIPE financing deal, described as the largest all-common-stock raise of its kind since 2021.
The combined company was expected to launch with more than 400,000 ETH on its balance sheet. A large portion of that came from a contribution by co-founder Andrew Keys, an early Consensys member.
As part of the termination agreement, a party linked to The Ether Machine must wire $50 million to Dynamix within 15 days. The payment is outlined in an 8-K filing with the SEC.
The $50 million figure is large relative to Dynamix’s market cap of around $232 million. The exact identity of the paying party has not been confirmed in the filing.
The termination also unwinds related agreements, including Sponsor Support and Subscription Agreements. Both sides exchanged mutual releases and non-disparagement agreements covering potential investor litigation.
Dynamix is not done. The SPAC still has until November 22, 2026 to close a new business combination.
If Dynamix fails to find and complete a new deal by that deadline, it must wind down, redeem public shares, and liquidate.
The collapse comes as ether’s price has struggled in recent months. Broader interest in crypto-adjacent SPAC listings has also cooled.
Despite this deal falling apart, the Ethereum treasury space remains active. There are currently 10 Ethereum treasury companies holding more than 6 million ETH, worth nearly $14 billion combined.
The largest of these is Tom Lee’s Bitmine, which recently uplisted to the New York Stock Exchange. Its board also approved raising its share repurchase authorization from $1 billion to $4 billion.
Representatives for both The Ether Machine and Dynamix did not respond to requests for comment.
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