FTX’s implosion may have sapped investor confidence and prolonged the crypto winter, but that doesn’t appear to be an obstacle for many exchanges looking to expand through mergers and acquisitions.
One of them is – CrossTower – a cryptocurrency exchange that is reportedly considering new acquisitions of different types of companies with a large number of customers and a healthy balance sheet.
Risk Appetite for Acquisitions
Kapil Rathi, CEO of CrossTower, said investors are “cautious” given that the current cryptocurrency market sentiment has deteriorated. According to Bloomberg, the executive asserted that the company is still in a “good position” despite the ongoing bear market. The executive also added,
“We’re in a good position to acquire entities that have a lot of customers and a good balance sheet. So we’re openly looking at different types of companies from an organic growth standpoint.”
In a statement, the firm’s president, Kristin Boggiano, revealed that CrossTower had “very little exposure” to the collapse of bankrupt cryptocurrency firm FTX. The company is also reportedly looking to create a rescue venture fund with several of its backers. However, Rathi insisted that the company currently has no plans to donate to the recovery fund that Binance has set up to support struggling projects.
The acquisition progress comes weeks after CrossTower announced plans to revise its offer for the Voyager Digital assets. As previously reported, FTX US won the bid for approximately $1.4 billion in assets from the bankrupt cryptocurrency lender.
The asset sale will be completed upon approval of the Chapter 11 plan and asset purchase agreement by the US Bankruptcy Court for the Southern District of New York.
However, FTX and more than 100 affiliated entities, including FTX US, filed for bankruptcy on November 11. This prompted Voyager to restart its bidding process, and a new revised offer for CrossTower was issued on the same day.
Compared to the potential value of his business, CrossTower’s president doesn’t think Voyager’s own $3 million exposure to FTX is worrisome. She added,
“Three divided by $1.3 billion is a very small number.”
Other firms vying to acquire Voyager’s assets include asset manager Wave Financial, which participated in its last auction, and the U.S. arm of CZ-led cryptocurrency exchange Binance.
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Source of information: Compiled from CRYPTOPOTATO by 0x Information.The copyright belongs to the original author and shall not be reproduced without permission