Ether Machine canceled its planned public debut after the Ethereum vault-focused company and Dynamix Corporation agreed to end their merger, citing deteriorating market conditions.
On Saturday post in X, Ether Machine stated that the decision to terminate the contract was mutual and effective immediately. The transaction was intended to take the company public through a merger with a Nasdaq-listed special purpose acquisition company (SPAC), with the involvement of The Ether Reserve LLC.
“Ether Reserve LLC, along with certain other parties, announced today that they have jointly agreed to terminate their previously announced business combination agreement, effective immediately, as a result of unfavorable market conditions,” the company said.
According to A filing with the U.S. Securities and Exchange Commission, an anonymous “Payor”, identified in Exhibit A of the agreement but not publicly disclosed, must pay Dynamix $50 million within 15 days of the termination becoming effective.
Related: Bitmine lists on the NYSE after share buybacks surge to $4 billion
Ethereum’s $1.5 billion Ether Machine treasury plan collapses
Ether Machine first announced plans to launch what it called the largest income-generating Ether (ETH) fund aimed at institutional investors in July last year. At the time, the company, co-founded by former Consensys executives Andrew Keys and David Merin, said it would be listed on the Nasdaq under the ticker “ETHM” and would launch with over 400,000 ETH worth over $1.5 billion at the time.
In September, Ether Machine secured $654 million in a private funding round, including 150,000 ETH from Ethereum attorney Jeffrey Berns, who also joined the company’s board. The raise was part of a broader plan to build a vast vault of Ether ahead of its planned Nasdaq debut, which has now been canceled.
Meanwhile, Dynamix has a confined window to conclude a fresh contract. The company has until November 22, 2026 to complete another business combination. If it fails to do so, it will be obliged to liquidate and return the funds entrusted to shareholders in accordance with its statute.
Related: Peter Thiel’s founding fund abandons stake in ETHZilla amid pressure on ETH treasury bonds
Ethereum Treasury Exits Deepen
Ether funds exit amid growing pressure on Ethereum treasury strategies. Trend Research fully expanded its position in Ethereum, selling 651,757 ETH worth approximately $1.34 billion while suffering an estimated loss of $747 million.
Separately, ETHZilla, formerly a biotech company that switched to an Ethereum treasury strategy during the 2025 hype, has also moved away from Ether accumulation, updating its corporate name and brand on Forum Markets.
