A planned $1.6 billion SPAC merger between Dynamix Corporation (DYNX) and crypto company The Ether Machine has been canceled due to unfavorable market conditions, The Ether Machine said on Friday.
The deal, first unveiled in July 2025, aimed to take ether (ETH) treasury firm The Ether Machine public on Nasdaq under the symbol ETHM.
The company is designed to act as an Ethereum treasury and yield vehicle, generating returns through staking and decentralized finance strategies while maintaining large reserves of ether. It currently holds 496,712 ETH worth more than $1.1 billion, according to data from CoinGecko.
Initially, the agreement stood out for its scale. It included a fully committed $1.5 billion PIPE financing deal, described as the largest common share raise of its kind since 2021, along with approximately $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 been called off due to what the companies described as unfavorable market conditions. According to The Ether Machine, the two companies “mutually agreed to terminate” the agreement. As part of the termination agreement, Dynamix will receive a payment of $50 million within 15 days, according to a document filed with the United States Securities and Exchange Commission (SEC).
