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Following Voyager’s bid, Crosstower is eyeing more acquisitions

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The FTX boom may have eroded investor confidence and exacerbated the crypto winter, but that doesn’t seem to stop many exchanges from pursuing expansion through M&A.

One of them is – CrossTower – a crypto exchange that is reportedly considering new acquisitions from a variety of companies with a good set of clients and a positive balance sheet.

risk appetite for acquisitions

Kapil Rathi, CEO of Crosstower, said investors are “cautious” as the current crypto market sentiment has turned sour. According to a Bloomberg report, the CEO stressed that the company is in a “great place” despite the ongoing bear market. The executive also added,

“We are in a good position to acquire entities that have good customer bases and healthy balance sheets. So we’re looking at different types of businesses from an organic growth perspective.

The company’s president, Kristin Boggiano, revealed in a statement that CrossTower had “minimal risk” of the collapse of bankrupt crypto firm FTX. The company is also reportedly looking to set up a rescue fund with some of its backers. However, Rathi added that the company has no plans to contribute to the Binance Recovery Fund set up to support distressed projects.

sailor quote

The acquisition development comes weeks after Crosstower announced plans to review its bid for Voyager Digital’s assets. As previously reported, FTX US has secured the winning bid for approximately $1.4 billion in assets from the bankrupt cryptocurrency lender.

The sale of the assets will be completed after a Chapter 11 plan and an asset purchase agreement are approved by the United States Bankruptcy Court for the Southern District of New York.

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However, more than 100 of its affiliates, including FTX and FTX US, filed for bankruptcy on November 11. This prompted Voyager to reopen the bidding process, and a new revised offer from Crosstower arrived that same day.

CrossTower’s president believes that Voyager’s own $3 million FTX exposure is an ongoing concern when compared to the potential value of his company. He added,

“$1.3 billion divided by three is a very small number.”

Other companies in the race to buy Voyager’s assets include asset manager Wave Financial, which participated in the previous auction, as well as the US arm of CZ-led crypto exchange Binance.

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source: cryptopotato.com

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