The Ether Machine Raises $1.5 Billion to Become Largest Public Ethereum Yield Vehicle

The Ether Machine, a newly formed entity focused on Ethereum yield generation, announced Monday it has secured over $1.5 billion in fully committed capital ahead of its planned public debut on Nasdaq under the ticker "ETHM."

The company expects to launch with more than 400,000 Ether (ETH) on its balance sheet, positioning itself as what it calls "the largest pool of assets in a public vehicle for pure-play institutional-grade exposure to Ethereum and ETH-denominated yield."

The public launch will occur through a definitive business combination agreement between The Ether Reserve, LLC and Dynamix Corporation (Naasdaq: DYNX), with the transaction expected to close by the fourth quarter of 2025, subject to shareholder approval and other customary closing conditions, the announcement said.

Record Financing Deal

The financing represents the largest all-common-stock deal committed at announcement since 2021, according to the company. The funding includes approximately $645 million contributed by co-founder and chairman Andrew Keys in the form of 169,984 ETH, alongside an upsized common stock financing exceeding $800 million from institutional and strategic investors.

Major backers include 1Roundtable Partners/10T Holdings, Archetype, Blockchain.com, cyber•Fund, Electric Capital, Kraken, and Pantera Capital. The transaction is expected to deliver over $1.6 billion in gross proceeds, including up to $170 million of cash held in Dynamix's trust account.

Shares of Dynamix Corporation surged 30% in pre-market trading following the announcement, jumping from $10.25 to $14.46, though it has since pared its gains to close the trading session at $11.93.

Ethereum Veterans Leading the Charge

The Ether Machine is led by blockchain industry veterans with deep ties to Ethereum's development. Keys was an early member at Consensys who helped create the first Ethereum Blockchain-as-a-Service offering with Microsoft in 2015 and co-founded the Enterprise Ethereum Alliance in 2017.

David Merin, co-founder and CEO, previously headed corporate development at Consensys, where he led over $700 million in fundraising and five acquisitions. Tim Lowe, Chief Technology Officer, brings two decades of experience building financial systems and previously served as head of staking at Consensys.

The company outlined three core strategic objectives: 1) generate alpha, 2) catalyze the ecosystem, and 3) build infrastructure solutions.

The announcement comes amid growing institutional interest in Ethereum and its yield-generating capabilities. In explaining its focus on ETH accumulation, The Ether Machine noted that Ethereum settles over $14 trillion annually, anchors more than $130 billion in stablecoins, and secures most DeFi activity across the crypto ecosystem.

"Bitcoin is digital gold. Ether is productive digital oil," the company stated, highlighting ETH's yield-generating properties through staking, its deflationary mechanics through token burning, and its programmability.

Citigroup Global Markets served as Capital Markets Advisor to The Ether Machine and Sole Placement Agent for the institutional financing round.