Shares of U.S.-based blank-check company Dynamix Corporation (DYNX) popped almost 17% after the company announced it will merge with The Ether Reserve LLC to form The Ether Machine. The merged company plans to manage over $1.5 billion in Ethereum, the second-largest cryptocurrency after Bitcoin.
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For context, a blank-check company is formed with no business operations and exists solely to raise money through an IPO to acquire or merge with another company.
Details About the Deal
The merged entity, The Ether Machine, will trade on the Nasdaq under the ticker “ETHM.” The deal is expected to raise over $1.6 billion, including $1.5 billion in committed funding. The deal is backed by top crypto investors, including Kraken and Blockchain.com, who are putting in over $800 million through a larger stock offering. The Ether Machine also received around $645 million in anchor funding from its co-founder, Andrew Keys, who will serve as chairman.
Notably, The Ether Machine plans to launch with 400,000 Ethereum, offering investors a direct and institutional-grade way to gain exposure to Ethereum.
Ethereum Gains Ground
The deal reflects growing institutional interest in adding crypto to corporate balance sheets. In recent months, several projects have announced plans to go public, aiming to tie crypto assets to equity to attract traditional investors. This also reflects confidence that investors will support firms with major crypto holdings under the Trump administration.
While most companies have focused on Bitcoin, Ether has also gained traction, recently hitting a high point. Reflecting this shift, The Ether Machine joins a growing list of companies building digital asset reserves based on Ethereum, including SharpLink Gaming (SBET), BitMine (BNMR), and BTCS (BTCS).
Year-to-date, DYNX stock has gained over 22%.
