A 5% stake in AI coding startup Cursor, sold by FTX's bankruptcy estate for $200,000 in April 2023, would now be valued at approximately $3 billion following SpaceX's acquisition deal at a $60 billion valuation. Elon Musk's SpaceX has secured the right to acquire Cursor later this year for $60 billion, or pay a $10 billion breakup fee if the full acquisition does not proceed. This move aims to close the gap with competitors in the AI coding tools space. The crypto aspect of this deal lies in Alameda Research's $200,000 investment in Anysphere, the company behind Cursor, in April 2022.
This investment, which bought around 5% of the company at a $4 million valuation, was sold by the FTX estate for the same amount a year later. The significant disparity between the sale price and the current valuation of $3 billion has sparked debate, particularly in light of Sam Bankman-Fried's argument that FTX's estate destroyed billions in value by liquidating assets too quickly during the bankruptcy.
The timing of this deal has also raised questions about the administration of FTX's bankruptcy, with some citing it as an example of the kind of value that could have been preserved if assets had been held rather than sold. The FTX estate's decision to sell the stake has resulted in a missed recovery of roughly $3 billion, which could have been realized by the creditors if the asset had been held. This incident is likely to feature in ongoing discussions about the handling of FTX's assets and the potential for a pardon for Sam Bankman-Fried, who is currently serving a 25-year federal sentence.