In a stunning 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 worth approximately $3 billion following SpaceX's recent agreement to acquire the company at a $60 billion valuation. This deal is part of Elon Musk's strategy to close the gap with competitors in the AI coding tools sector. The acquisition is contingent on SpaceX's planned initial public offering, which aims for a $2 trillion valuation, with a potential breakup fee of $10 billion. The crypto aspect of this story revolves around Alameda Research's initial $200,000 investment in Anysphere, the company behind Cursor, in April 2022.
This investment, which represented about 5% of the company at a $4 million valuation, was sold by the FTX estate for the same amount a year later, following the collapse of FTX and Alameda. The stark contrast between the sale price and the current valuation of $3 billion, representing a 15,000% return, has significant implications for FTX's bankruptcy administration and its creditors. This development may also impact the ongoing discussion 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 noteworthy, as it comes after FTX customers were made whole in dollar terms under the bankruptcy's distribution plan, but without the potential upside from the assets' subsequent appreciation in value.