Desktop Metal Files for Bankruptcy

Nano Dimension Ltd. reports that its subsidiary, Desktop Metal, Inc., has filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code.

The decision to file for bankruptcy protection was made by Desktop Metal’s independent board of directors, who initiated a process to explore strategic alternatives and address Desktop Metal’s liabilities and liquidity needs related to decisions made by its prior management.

“We are safeguarding our financial strength and preserving our position as the best capitalized company in our ecosystem," said Ofir Baharav, Nano Dimension’s CEO. "This is what enables the Company’s to pursue strategic opportunities from a position of maximum strength—and that is exactly what the Company’s shareholders should expect from us.”

AM industry analyst Wohlers Associates remarked, "The announcement would appear to be the final chapter in a circuitous course navigated by Desktop Metal since its founding in 2015."

Desktop Metal became a publicly traded company in 2020 with a valuation of $2.5 billion. In May 2023, Stratasys made efforts to merge with Desktop Metal, in a $1.8 billion all-stock transaction. But four months later, in September 2023, Stratasys terminated the deal, announcing, "based on its preliminary count of the votes cast at the Company’s Extraordinary General Meeting of Shareholders (the “Stratasys EGM”), Stratasys shareholders did not approve the terms of the previously announced merger agreement with Desktop Metal, Inc."

In July 2024, Desktop Metal entered a merger agreement with Nano Dimension, but the sale stalled, leading Desktop Metal to sue Nano Dimention to complete the merger. In April 2025, following a court order from the Court of Chancery of the State of Delaware, Nano Dimension completed the acquisition of Desktop Metal for $179.3 million -- roughly 7% of the latter's IPO valuation back in 2023. Announcing the purchase, Nano Dimension wrote, "The combined company is expected to have annual revenue for the year ended December 31, 2024 of over $200 million, based on preliminary and unaudited full year 2024 results."

Wohlers noted, "Chapter 11 bankruptcy suggests that Desktop Metal is planning to reorganize, as opposed to Chapter 7 bankruptcy, in which the company’s operations are liquidated. However, Nano's announcement, supported by reporting from industry sources, suggests that the company's intention is to liquidate Desktop and sell its assets ... Desktop's core metal binder jetting business might be an attractive, bargain-basement opportunity for an acquirer wishing to try its luck with BJT (binder jet technology)."

 Nano Dimension had also attempted, unsuccessfully, to acquire Stratasys before. 

Sources: Press materials received from the company and additional information gleaned from the company’s website.