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 recent agreement to acquire the company at a $60 billion valuation. This development comes as SpaceX prepares for an initial public offering, targeting a $2 trillion valuation, with a potential $10 billion breakup fee if the acquisition does not proceed. The significant increase in value has brought attention to the crypto aspect, as Alameda Research, founded by Sam Bankman-Fried, initially invested $200,000 in Anysphere, the company behind Cursor, in April 2022.
After FTX's collapse, the court-appointed estate sold the stake for the same $200,000, resulting in a missed opportunity for creditors. This incident has sparked debate, particularly from Bankman-Fried, who argues that the estate's rapid liquidation of assets destroyed billions in value, and that customers could have benefited from holding positions instead of selling them at the bottom of crypto prices. The substantial gap between the realized value and the potential $3 billion highlights the consequences of the estate's decision, with FTX customers having been repaid in dollar terms but missing out on the significant upside of the assets.