The FTX implosion may have dampened investor confidence and extended the crypto winter, but that does not appear to be an obstacle for many exchanges seeking expansion through M&A.

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

Risk appetite for acquisitions

CrossTower CEO Kapil Rathi said investors are “cautious” as current crypto market sentiment has soured. According to a Bloomberg report, the executive said the company is in a “great place” despite the relentless bear market. The executive also added,

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

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

Voyager Offer

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

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

However, FTX and more than 100 of its affiliated entities, including FTX US, filed for bankruptcy on November 11. This prompted Voyager to reopen its bidding process and CrossTower’s new revised bid arrived the same day.

CrossTower’s president doesn’t think Voyager’s $3 million exposure to FTX is a concern compared to the potential value of his business. She added,

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

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

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This post After Voyager offer, CrossTower contemplates further acquisitions

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