- The Ether Machine will begin trading on the Nasdaq Monday under the ticker ETHM through merger with blank check company Dynamix Corporation.
- The company is the latest in an emerging cohort of new entities aiming to replicate MicroStrategy’s successful accumulation strategy, but around ether.
- The Ether Machine plans to differentiate with a focus on yield generation through staking rather than simply buying and holding the ether.
The latest crypto treasury company is set to hit the public market with an ambitious plan to build the largest public vehicle for institutional exposure to
ether
.
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The Ether Machine will begin trading on the Nasdaq Monday through a merger with blank check company Dynamix Corporation. Andrew Keys, the co-founder and chairman of the new company, has committed about $645 million in an anchor investment. The entity is backed by crypto investors 10T Holdings, Electric Capital, Pantera Capital and more. Once the merger is complete, it will trade under the ticker ETHM.
The company is the latest in an emerging cohort of new entities vying to become the MicroStrategy of Ethereum by replicating the bitcoin proxy’s successful accumulation strategy, but around ether, the second largest cryptocurrency by market cap, rather than bitcoin.
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Keys’ company plans to differentiate with a focus on yield generation through “staking” rather than simply buying and holding the ether. Staking is a mechanism for generating yield by contributing to network operations around security and transaction processing.
By purchasing ether from a crypto exchange or buying shares of an ether ETF, investors would get exposure to the coin’s price, “but without access to the dividend,” Keys explained.
“Ether produces yield if it’s properly managed,” he told CNBC’s
“Squawk Box”
Monday. “The ETFs right now don’t generate yield because they don’t enable staking … we’re able to enable staking and we’re able to do other additional risk management on top of that.”
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On Thursday, BlackRock
filed
with the SEC to include staking to its popular ETHA ether ETF, which just logged a record week of inflows.
The ability to stake makes ether a “more productive” asset than bitcoin, according to Keys.
The Bitcoin network “has one asset on it, bitcoin, that can be moved from peer to peer, but Ethereum can tokenize any asset,” Keys said. It’s “able to embed any type of digital asset – a bar of gold, a barrel of oil, a stock, a bond, a derivative – into digital legal agreements, and in doing so, you’re able to expedite the velocity of money. You can have employment contracts that get paid by the minute, as an example.”
Shares of
Dynamix
jumped 30% in premarket trading.
The Ether Machine follows
Bitmine Immersion Technologies
– the company
newly chaired by Fundstrat’s Tom Lee
and more recently
backed by Peter Thiel
– in its ether treasury ambitions. Pantera was also a backer of Bitmine.
Also this year,
SharpLink Gaming
, whose board is chaired by Ethereum co-founder Joe Lubin, also
initiated an ETH treasury strategy
; and
Bit Digital
recently
exited bitcoin mining to focus on its ETH treasury
and staking plans.
Ether
has taken the spotlight in crypto
from bitcoin in recent months as investors anticipated the stablecoin bill known as the GENIUS Act would be signed into the first major U.S. crypto law, which President Trump did Friday. The regulatory clarity should benefit institutions and brands becoming more interested in tokenization, which includes stablecoins, most of which are issued on the Ethereum network.
Ether has doubled in the last three months and last week, ether ETFs posted a record $2.18 billion in weekly inflows.
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Where bitcoin and related stocks could be headed next, according to Katie Stockton
-
These stocks are the best way to play the crypto space in the second half, Wolfe says
Also on CNBC
-
President Trump signs GENIUS Act, creating stablecoin regulatory framework: CNBC Crypto World
-
Rep. Bryan Steil says he hopes President Trump can sign crypto bill this week: CNBC Crypto World
-
Ether in spotlight as Trump signs stablecoin bill into first big U.S. crypto law
