Following SpaceX's agreement to acquire Cursor at a $60 billion valuation, it has been revealed that FTX's bankruptcy estate sold a 5% stake in the company for $200,000 in April 2023, a stake now worth approximately $3 billion. This significant increase in value has brought attention to the crypto angle of the deal, as Alameda Research, founded by Sam Bankman-Fried, initially invested $200,000 in Anysphere, the company behind Cursor, in April 2022. The investment, which bought around 5% of the company at a $4 million valuation, was sold by FTX's estate for the same amount after the company's collapse.
The substantial gap between the sale price and the current valuation has sparked debate, with Bankman-Fried arguing from prison that FTX's estate destroyed billions in value by liquidating assets too quickly. The timing of the sale has also raised questions about the bankruptcy administration's handling of assets, with the Cursor stake representing a significant missed recovery opportunity for creditors. The company's rapid growth, launching its AI coding product in early 2023 and reaching a $60 billion valuation just three years later, is among the steepest in software startup history.
While FTX customers have been repaid in dollar terms, they have not benefited from the upside of the assets sold during the bankruptcy, including the substantial increase in value of the Cursor stake.