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 agreement to acquire the company at a $60 billion valuation. This development has brought attention to the significant losses incurred by FTX's estate due to the sale of its assets during bankruptcy proceedings. SpaceX's acquisition is part of Elon Musk's efforts to bridge the gap with competitors in the AI coding tools sector. The deal has also raised questions about the timing of the sale and the potential value that could have been realized if the stake had been held.
The FTX estate's decision to sell the stake for $200,000, the same amount Alameda Research had invested in the company, has resulted in a missed opportunity for creditors, with the stake now being worth $3 billion. This example is likely to be cited by Sam Bankman-Fried, currently serving a 25-year federal sentence, as he argues that the estate's liquidation of assets too quickly during the bankruptcy destroyed billions in value.
The significant increase in value of the Cursor stake has also sparked debate about the bankruptcy administration's handling of FTX's assets and the potential for creditors to have received greater returns if the assets had been held rather than sold.