TLGY Moves Toward $100M ENA Token Deal With Ethena
In a strategic push into crypto infrastructure, Cayman Islands-based SPAC TLGY has signed a non-binding letter of intent with the Ethena Foundation to acquire a validator business and potentially buy up to $100 million in ENA tokens.
According to an April 9 filing with the U.S. Securities and Exchange Commission (SEC), the deal would support the broader Ethena ecosystem, including the upcoming Converge network.
Acquisition, Validator Expansion, and ENA Discount Deal
If finalized, TLGY would acquire a validator business integral to Ethena’s infrastructure. As part of the proposed agreement, TLGY would also gain the right to purchase ENA tokens directly from Ethena at a mutually agreed discount, based on the market rate on the day of the merger’s completion.
To finance the $100 million token acquisition, TLGY plans to use a combination of cash from its escrow account and equity through a PIPE (Private Investment in Public Equity) agreement with Ethena. The precise discount rate and structure are still under negotiation.
The deal framework includes provisions for future discounted token allocations, pending further approval. The potential partnership would last for five years from the date a definitive agreement is signed.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
