Dynamix Corporation (DYNX) surged nearly 17% on Monday, July 21 after announcing its merger with The Ether Machine, expected to close by the fourth quarter of 2025. The deal aims to create the largest public vehicle for institutional Ethereum (ETHUSD) exposure, trading under the ticker ETHM.

The Ether Machine is led by co-founder Andrew Keys with a $645 million anchor investment. It plans to focus on yield generation through “staking” rather than just holding Ethereum. This approach enables the company to earn dividends by contributing to Ethereum network operations, a feature that current spot Ethereum ETFs do not offer.

“Ether produces yield if it’s properly managed,” Keys explained, emphasizing Ethereum’s advantages over Bitcoin (BTCUSD) in tokenizing various assets and enabling faster transaction processing.

The company joins an emerging cohort seeking to become “the MicroStrategy of Ethereum,” including Bitmine Immersion Technologies (BMNR) and SharpLink Gaming (SBET). With backing from major crypto investors like Pantera Capital, Electric Capital, and 10T Holdings, The Ether Machine enters a hot market in which Ethereum has doubled in value over the past three months and ETFs have recently posted record weekly inflows of $2.18 billion.

The Ether Machine is led by blockchain veterans with deep Ethereum expertise. Co-Founder and Chairman Andrew Keys previously helped create the first Ethereum blockchain as a service with Microsoft (MSFT) and co-founded the Enterprise Ethereum Alliance.

CEO David Merin led over $700 million in fundraising at Consensys, while CTO Tim Lowe pioneered institutional staking platforms. The team also includes DeFi expert Darius Przydzial and PayPal (PYPL) board member Jonathan Christodoro as vice chairman.

The Ether Machine intends to operate as an Ethereum generation company with three core objectives: generating alpha through staking, restaking, and DeFi protocols; catalyzing the Ethereum ecosystem through partnerships and research; and building infrastructure solutions for institutions and Ethereum projects.

Key highlights of the SPAC deal include:

• Andrew Keys’ $645 million anchor investment (169,984 ETH)

• Over $800 million in institutional backing

• Expected gross proceeds exceeding $1.6 billion

• Launch with over 400,000 ETH on the balance sheet