Largest Ethereum Yield Vehicle Secures $1.5 Billion in Funding
The Ether Machine, a new entity focused on Ethereum yield generation, has secured over $1.5 billion in fully committed capital, marking one of the largest all-common-stock deals committed at announcement since 2021.
Led by blockchain industry veterans with deep ties to Ethereum's development, The Ether Machine aims to capitalise on Ethereum's potential as "productive digital oil". This characterisation highlights Ethereum's yield-generating properties through staking, deflationary mechanics through token burning, and programmability.
At the helm is Tim Lowe, Chief Technology Officer, who previously served as head of staking at Consensys and brings two decades of experience building financial systems. David Merin, co-founder and CEO, also hails from Consensys, where he headed corporate development and led over $700 million in fundraising and five acquisitions.
Andrew Keys, co-founder and chairman, was an early member at Consensys and helped create the first Ethereum Blockchain-as-a-Service offering with Microsoft in 2015. Keys also co-founded the Enterprise Ethereum Alliance in 2017.
The Ether Machine's focus is on ETH accumulation, given Ethereum's settlement of over $14 trillion annually, anchoring more than $130 billion in stablecoins, and securing most DeFi activity across the crypto ecosystem. The company plans to launch with more than 400,000 Ether (ETH) on its balance sheet, and up to $170 million of cash will be held in Dynamix's trust account.
Citigroup Global Markets served as Capital Markets Advisor to The Ether Machine and Sole Placement Agent for the institutional financing round. The transaction is expected to deliver over $1.6 billion in gross proceeds. The public debut is scheduled on Nasdaq under the ticker "ETHM".
The funding includes contributions from major backers such as 1Roundtable Partners/10T Holdings, Archetype, Blockchain.com, cyber•Fund, Electric Capital, Kraken, and Pantera Capital. Notably, approximately $645 million of the funding was contributed by co-founder and chairman Andrew Keys.
The company outlines three core strategic objectives: generate alpha, catalyse the ecosystem, and build infrastructure solutions. The Ether Machine aims to utilise its substantial capital to make strategic investments, foster partnerships, and develop innovative solutions within the Ethereum ecosystem.
Shares of Dynamix Corporation, the parent company of The Ether Machine, surged 30% in pre-market trading following the announcement, but closed the trading session at $11.93. The exact share prices or gross proceeds for the funding round were not disclosed in this announcement.
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