Complex sentence: The knife is made of dreamstone, just like the machine, and thus it should be capable of stopping it... as the knife is thrust into the Mammon Machine, it is transfigured into the Masamune.
Split into simpler sentences: The knife is made of dreamstone, just like the machine, and thus it should be capable of stopping it. As the knife is thrust into the Mammon Machine, it is transfigured into the Masamune.