After Voyager Bid, CrossTower Eyes Further Acquisitions

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The FTX implo­sion may have dent­ed investor con­fi­dence and extend­ed the cryp­to win­ter, but that does not appear to be a hur­dle for many exchanges from pur­su­ing expan­sion via merg­ers and acquisitions.

One such is – CrossTow­er – a cryp­to exchange that is report­ed­ly con­sid­er­ing new acqui­si­tions of dif­fer­ent types of com­pa­nies with a good set of cus­tomers with them and a pos­i­tive bal­ance sheet.

Risk Appetite for Acquisitions

CrossTower’s CEO Kapil Rathi said investors are “cau­tious” giv­en that the cur­rent cryp­to mar­ket sen­ti­ment has soured. Accord­ing to a Bloomberg report, the exec assert­ed that the com­pa­ny is in a “great place” despite the inces­sant bear mar­ket. The exec also added,

“We’re in a great place to either acquire enti­ties who have a good set of cus­tomers with them and a good bal­ance sheet. So we are open­ly look­ing at dif­fer­ent types of com­pa­nies from an organ­ic growth perspective.”

The company’s Pres­i­dent, Kristin Bog­giano, revealed in a state­ment that CrossTow­er had “min­i­mal expo­sure” to the col­lapse of the bank­rupt cryp­to firm FTX. The com­pa­ny is also report­ed­ly look­ing to estab­lish a res­cue ven­ture fund along with sev­er­al of its back­ers. Rathi, how­ev­er, main­tained that the firm cur­rent­ly has no plans to con­tribute to Binance’s recov­ery fund cre­at­ed to sup­port dis­tressed projects.

Voyager Bid

The acqui­si­tion devel­op­ment comes weeks after CrossTow­er announced plans to revise the offer for the assets of Voy­ager Dig­i­tal. As report­ed ear­li­er, FTX US secured the win­ning bid for the assets of approx­i­mate­ly $1.4 bil­lion of the bank­rupt cryp­to lender.

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

How­ev­er, FTX and over 100 of its affil­i­at­ed enti­ties, includ­ing FTX US, filed for bank­rupt­cy on Novem­ber 11. This prompt­ed Voy­ager to reopen its bid­ding process, and the new revised offer from CrossTow­er came on the same day.

CrossTower’s Pres­i­dent does not believe Voyager’s own $3 mil­lion in expo­sure to FTX is a con­cern com­pared to the poten­tial val­ue of its busi­ness. She added,

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

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

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