Ether Machine and Dynamix Corporation end their Nasdaq merger deal. A $50M termination fee is due as the SPAC hunts a new target by 2026.
The Ether Machine’s planned Nasdaq debut is officially off the table.
Dynamix Corporation (Nasdaq: ETHM) and The Ether Machine announced that they have mutually terminated their pending business combination.
The deal collapsed due to unfavorable market conditions. Both parties confirmed the termination took effect on April 8, 2026. A $50 million fee now hangs in the balance as part of the exit terms.
Ether Machine and Dynamix End SPAC Business Combination
The two companies had originally signed their Business Combination Agreement on July 21, 2025.
The deal involved multiple entities, including The Ether Reserve LLC, ETH Partners LLC, and several merger subsidiaries.
According to an SEC filing, all related agreements, including subscription and contribution agreements, terminated alongside the main deal.
The termination was mutual. Neither side placed public blame on the other.
The filing notes that the agreement carries mutual releases covering all known and unknown claims tied to the Business Combination Agreement.
A non-disparagement clause and a covenant not to sue are also part of the exit terms. The parties structured the termination to limit future legal exposure.
The filing indicates that indemnification provisions protect Dynamix, its sponsor, and their affiliates from claims brought by certain ETHM investors.
Pubco, the Company, and related parties get similar protection against actions from Dynamix shareholders.
The Ether Machine, a planned public company following a pending business combination with Dynamix Corporation (Nasdaq: ETHM) and The Ether Reserve LLC, together with certain other parties thereto, announced today that they have mutually agreed to terminate their previously…
— Ether Machine (ETHM) (@TheEtherMachine) April 11, 2026
$50 Million Termination Fee Due Within 15 Days
The most notable financial detail in the SEC filing is the $50 million payment.
An unnamed “Payor,” likely connected to The Ether Machine side of the deal, must pay Dynamix $50,000,000 within 15 days of April 8, 2026.
That payment deadline falls around April 23, 2026. The identity of the Payor is not disclosed in the filing.
The termination agreement only references the party by name on Annex A, keeping that detail out of the public summary.
Despite this, the obligation is clear and binding under the signed termination terms.
This fee represents a significant financial consequence of the failed merger. It also signals that the deal had considerable value attached to it before market conditions shifted.
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Dynamix Remains a SPAC With a November 2026 Deadline
With the deal dead, Dynamix returns to its status as a blank-check company.
Its amended governing documents give it until November 22, 2026 to complete a new initial business combination.
That leaves roughly seven months to identify and close a fresh deal. If Dynamix fails to meet that deadline, it must wind down operations.
The company would then redeem public shares using funds held in its trust account.
Shareholders would receive cash equal to their pro-rata share of the trust, net of taxes and limited dissolution costs.
The SPAC’s sponsor and its officers have already waived rights to trust distributions on their founder shares if no deal closes in time.
However, they retain rights to any assets held outside the trust, which could include a portion of the $50 million termination payment after expenses.
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