In a shocking turn of events, 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 recent acquisition agreement at a $60 billion valuation. This deal, spearheaded by Elon Musk, aims to bridge the gap with competitors in the AI coding tools space. The acquisition is contingent on SpaceX's planned initial public offering, which targets a $2 trillion valuation.
The crypto community is abuzz with the news, particularly given the circumstances surrounding FTX's collapse and the subsequent sale of its Cursor stake. The investment, initially made by Alameda Research in 2022, was sold by the court-appointed estate for the same $200,000, resulting in a staggering 15,000x return that could have been realized by FTX's creditors.
This development has sparked renewed debate about the handling of FTX's assets during the bankruptcy process, with founder Sam Bankman-Fried arguing that the estate's liquidation of assets too quickly destroyed billions in value. The timing of this revelation is particularly awkward, given Bankman-Fried's current 25-year federal sentence and his assertions that customers could have been made whole if the process had been handled differently. As the story unfolds, it is likely that the Cursor stake will become a focal point in discussions about the case against Bankman-Fried and the fate of FTX's assets.