An article that was published by Bloomberg on November 24 revealed that CrossTower chief executive Kapil Rathi lamented the collapse of the disruptive FTX exchange as the cause of the turmoil in the cryptocurrency market. Rathi stressed, in light of the aftershock, that CrossTower places a high priority on purchasing businesses that can demonstrate a stable balance sheet and clients.

Pursuit of Competition Regarding Voyager's Digital Assets

In spite of the bearish momentum now being displayed by the cryptocurrency sector, the head of CrossTower stressed the need of maintaining the company's organic growth. While acknowledging the tense state of the cryptocurrency industry, the chief of CrossTower disclosed the competitive bid that involved FTX Group and Binance to acquire the assets of the defunct Voyager Digital. He admitted that FTX trading was successful in their proposal, which was accepted on September 27 and was for $1.4 billion.

However, on November 11, FTX Group and its affiliates filed for bankruptcy, which put a wrench into the takeover and forced Voyager to resubmit the proposal. Rathi acknowledged that the unexpected turn of events made it possible for CrossTower to provide an updated offer.

Kristin Boggiano, president of CrossTower, presented the amended offer in such a way that it gave the impression that it was intended to provide extensive benefits to Voyager clients. In addition, the offer imitated the community-focus that CrossTower has by making the promise that it will benefit all of the players in the cryptocurrency business.

The Effects of Being Exposed to Investments Related to FTX

Boggiano has dismissed the possibility that Voyager's three million dollar investment in FTX is a determining factor in the process of completing the potential acquisition, despite the fact that details of the most recent bid remain scant. He admitted that CrossTower had very little exposure to the FTX Group, which has been doing poorly.

Boggiano, who found the collapse of FTX to be educational, issued a challenge to the cryptocurrency industry, urging companies to prioritize investments in highly transparent schemes and compliance-focused platforms. In spite of this, Rathi reported that CrossTower's desire to acquire other businesses is beginning to level off. The short- to medium-term priorities are being replaced with a cautious progressive acquisition.

In contrast, Rathi's comments for a cautious acquisition occurred around the same time as the revelation that Binance and Wave Financial venture capital had expressed secondary participation in the second Voyager's assets acquisition. Despite the relatively low trading volume on the US crypto asset exchange, which barely exceeded $200,000 per day, the chief executive Rathi radiated confidence for a subsequent bid. He said this despite the fact that the bid would be for more.