Ether Machine Secures Over $2.1 Billion in ETH Commitments Ahead of Nasdaq Debut, Highlighting Exploding L2 Activity

NEW YORK – The Ether Machine, a newly formed entity designed to provide institutional-grade exposure to Ethereum, has amassed over $2.1 billion in Ether (ETH) commitments, positioning itself for a Nasdaq listing under the ticker "ETHM" in the fourth quarter of 2025. This significant capital raise coincides with a surge in Ethereum Layer 2 (L2) activity, a trend championed by industry veterans like Andrew Keys, Co-Founder and Chairman of The Ether Machine. Keys recently highlighted this growth, stating, "> @ethereum L2 activity is exploding. @TheEtherMachine $ETHM."

The Ether Machine, formed through a merger between The Ether Reserve, LLC and Nasdaq-listed Dynamix Corp., aims to launch with an impressive 495,362 ETH on its balance sheet. This makes it the largest public vehicle for institutional investors seeking direct access to Ethereum and ETH-denominated yield. The company plans to actively generate returns through staking, restaking, and participation in decentralized finance (DeFi) protocols, differentiating itself from passive cryptocurrency holding strategies.

Andrew Keys, a former executive at ConsenSys, is a key figure behind the venture, having personally contributed approximately 169,984 ETH, valued at around $645 million. The initiative has garnered substantial backing from prominent crypto investors including 1Roundtable Partners, 10T Holdings, Archetype, Blockchain.com, cyber•Fund, Electric Capital, Kraken, and Pantera Capital, who collectively committed over $800 million. Further bolstering its holdings, Jeffrey Berns, founder of Blockchains, recently invested an additional 150,000 ETH, worth approximately $654 million.

The burgeoning interest in Ethereum's ecosystem is underscored by the rapid expansion of its Layer 2 solutions. As of Q1 2025, L2s are processing over 60% of all Ethereum transactions, with platforms like Arbitrum and Optimism leading the charge. This migration to L2s has dramatically reduced average transaction fees to approximately $0.08, a significant drop from the mainnet's average of $3.78, making the network more accessible and efficient for users and developers.

Recent upgrades, such as the EIP-4844 (proto-danksharding) launched in February 2025, have further optimized L2 operations by cutting data costs by over 50%. This technological advancement has encouraged developers, with over 65% of new Ethereum smart contracts now being deployed directly on Layer 2 networks. The total value locked across Ethereum L2s has surged, exceeding $27 billion, marking a 37% year-over-year increase and signaling robust growth and adoption.