The value of a 5% stake in AI coding startup Cursor, sold by FTX's bankruptcy estate for $200,000 in April 2023, has skyrocketed to approximately $3 billion following SpaceX's acquisition agreement at a $60 billion valuation. This development comes as SpaceX plans to acquire Cursor later this year for $60 billion or pay a $10 billion breakup fee, driven by Elon Musk's efforts to boost xAI's position in AI coding tools. The investment was initially made by Alameda Research in April 2022, buying roughly 5% of the company at a $4 million valuation. After FTX's collapse, the court-appointed estate sold the stake for the same $200,000, resulting in a significant loss for creditors.
This turn of events supports Sam Bankman-Fried's argument that the estate's rapid liquidation of assets destroyed billions in value, and the Cursor stake's massive appreciation underscores the potential upside that could have been realized if the assets had been held. The FTX estate's decision to sell the stake has become a prime example of the value that could have been recovered, with the $3 billion valuation representing a substantial missed opportunity.