The FTX implosion may have sapped investor confidence and prolonged the crypto winter, but that doesn’t appear to be a deterrent for many exchanges to seek expansion through mergers and acquisitions.
One of them – CrossTower – is a crypto exchange that is reportedly considering new acquisitions of various types of businesses with a good customer base and positive balance sheet.
Willingness to take risks for acquisitions
CrossTower CEO Kapil Rathi said investors are “cautious” as current crypto market sentiment has deteriorated. According to a Bloomberg report, the manager claimed that the company is in a “great place” despite the incessant bear market. The manager added,
“We’re in a great position to either acquire companies that have a good customer base and balance sheet. So we openly look at different types of companies from an organic growth perspective.”
The company’s president, Kristin Boggiano, announced in a statement that CrossTower was “minimally exposed” to the collapse of bankrupt crypto firm FTX. The company also reportedly intends to set up a bailout fund along with several of its backers. However, Rathi claimed that the company currently has no plans to contribute to Binance’s recovery fund, which was set up to support ailing projects.
The acquisition development comes weeks after CrossTower announced plans to overhaul the offering for Voyager Digital’s assets. As previously reported, FTX US secured the bid for the bankrupt crypto lender’s assets of around $1.4 billion.
The sale of assets would be completed after a Chapter 11 plan and asset purchase agreement were approved by the US Bankruptcy Court for the Southern District of New York.
However, FTX and over 100 of its affiliates, including FTX US, filed for bankruptcy on November 11. This prompted Voyager to resume its bidding process, and CrossTower’s new revised bid came the same day.
CrossTower President doesn’t think Voyager’s own $3 million exposure to FTX is cause for concern compared to the potential value of his deal. she added
“Three divided by $1.3 billion is a very small number.”
Other companies scrambling to buy Voyager’s assets include asset manager Wave Financial, which participated in its previous auction, and US arm of CZ-led crypto exchange Binance.
Source: Crypto News Deutsch