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.

SPAC TLGY is aiming to diversify its portfolio and expand into the cryptocurrency domain. They are in talks with Ethena Foundation to invest in their ecosystem.

Key takeaways:

* TLGY, based in the Cayman Islands, is making a move into crypto infrastructure by signing a non-binding letter of intent with Ethena Foundation.

* The deal would see TLGY acquiring a validator business and potentially buying up to $100 million in ENA tokens, supporting the broader Ethena ecosystem, including the upcoming Converge network.

* The integration of Ethena’s technology with Web3 protocols like BTC and ETH is a key focus for both parties.

If finalized, TLGY would acquire a validator business that is a crucial part of 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 fund 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 exact discount rate and structure are still being discussed.

The deal framework includes provisions for future discounted token allocations, pending further approval. The potential partnership would be valid for five years from the date a definitive agreement is signed.