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 agreement at a $60 billion valuation. Elon Musk's SpaceX plans to acquire Cursor, aiming to close the gap with competitors in AI coding tools. The deal is pending, with a potential $10 billion payment if the full acquisition does not proceed.
The investment, initially made by Alameda Research in 2022, was sold by the FTX estate after the company's collapse. This transaction has sparked controversy, with Sam Bankman-Fried arguing that the estate's hasty liquidation of assets destroyed significant value for creditors. The timing of the sale has raised questions about the bankruptcy administration's handling of assets, with the Cursor stake being a prime example of the potential upside that was missed.
The case has implications for FTX customers, who have been repaid in dollar terms but missed out on the potential growth in value of the assets.