Company: TLGYF
Filing Date: 2025-09-29
Form Type: S-4
Source: 0001213900-25-092592
Chunk: 170

Company: TLGY ACQUISITION CORP
Filing Date: 2025-09-29
Form: S-4
Chunk 170
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 cause prolonged downtime, reduce our competitiveness in the validator set, and materially and adversely affect our business, financial condition, and results of operations. Our business will be significantly dependent on the performance, adoption, and credibility of our ecosystem partners, including the Ethena Foundation and its associated assets. The loss of, or a significant decrease in business from, the Ethena Foundation and its associated assets, could have a material adverse effect on our business, financial condition and results of operations. At the Closing, we intend to pursue a crypto -nativetreasury strategy that involves partnering with the Ethena Foundation, which issues tokens through its affiliates, including but not limited to, ENA Token, sENA, and sUSDe, to accumulate such tokens to use as collateral for our validator business. Since we currently plan to hold and utilize only tokens issued by affiliates of the Ethena Foundation, our business will be significantly dependent on the performance, adoption, and credibility of the Ethena Foundation and its associated assets. Our financial exposure to Ethena -relatedassets, whether through direct holdings, staking, yield programs, or liquidity provisioning, could expose us to heightened volatility, 54 regulatory scrutiny, or operational risk. If the proposed Converge network other validation opportunities in the Ethena ecosystem utilizing ENA Token or the Ethena Protocol suffers a security breach, loss of user confidence, failure of its peg mechanisms, regulatory enforcement action, or other reputational harm, our business could be materially and adversely affected. Moreover, as the Ethena Protocol is governed by decentralized mechanisms and despite our substantial holdings of ENA Token, the native governance token of the Ethena Protocol, we may have limited influence over strategic decisions that materially affect the assets in which we are invested. See “— We have limited ability to influence the governance of the Ethena Protocol, and future changes may negatively impact our business.” In addition, we intend to operate a validator node business on the proposed Converge or any other validation opportunities in the Ethena ecosystem utilizing ENA Token in our treasury as well as other ENA Token we accumulate through our staking and also through purchases of discounted ENA Token directly from the Ethena Foundation or its affiliates in accordance with the Collaboration Agreement. We expect to generate a significant portion of our revenue from staking such ENA Token as part of our validator business. However, any failure to meet the expectations of the Ethena Foundation or the expectations of the stakeholders within the Ethena