Company: TLGYF
Filing Date: 2025-09-29
Form Type: S-4
Source: 0001213900-25-092592
Chunk: 184

Company: TLGY ACQUISITION CORP
Filing Date: 2025-09-29
Form: S-4
Chunk 184
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 reserve -backedstablecoins. A significant portion of the ENA Token held in our treasury may be used as collateral or otherwise locked in staking contracts to support our validator business. These activities are highly sensitive to prevailing interest rates, changes in market structure, the relative attractiveness of yields in DeFi protocols or TradFi, and shifts in risk appetite across markets. If interest rates rise or external yield opportunities, whether in DeFi or TradFi, become more attractive relative to the returns generated by our strategy, our treasury operations may underperform or become unsustainable. Additionally, locking digital assets as collateral for staking reduces our flexibility to reallocate capital in response to changing market conditions, potentially increasing opportunity costs or exposing us to elevated counterparty or protocol -specificrisks. Any sustained decline in staking rewards or DeFi yields, or increased competition for yield -generatingopportunities, may materially and adversely affect our financial performance and liquidity. We expect that a significant portion of the ENA Tokens in our digital asset treasury will be subject to lock-up restrictions and limited liquidity, increasing our exposure to valuation volatility and impairing our ability to monetize or rebalance the portfolio. We expect that a substantial portion of our ENA Token holdings will be subject to contractual lock -uprestrictions, preventing us from transferring or liquidating those tokens for a defined period of time. As a result, our exposure to ENA Token price fluctuations may be magnified, as we will be unable to adjust our position in response to adverse market conditions. Even after lock -upperiods expire, secondary trading in ENA Token may be limited, fragmented across centralized and decentralized exchanges, and subject to significant volatility given ENA Token’s relatively recent issuance, concentrated ownership, and speculative trading activity. These constraints may impair our ability to actively manage our digital asset treasury, including rebalancing our portfolio, hedging exposures, or accessing liquidity when needed. In the event of adverse price movements, protocol changes, or market disruptions, we may be unable to divest or hedge our ENA Token exposure in a timely or cost -effectivemanner. As a result, our financial condition, capital flexibility, and ability to pursue strategic opportunities may be materially and adversely affected, particularly during periods of stress or uncertainty in the digital asset markets. StablecoinX’s ENA Token holdings will be less liquid than its cash and cash equivalents and may not be able to serve as a source of liquidity for StablecoinX. After the Closing, a substantial part of StablecoinX’s assets