The value of FTX's stake in Cursor, an AI coding startup, has skyrocketed to approximately $3 billion after SpaceX announced its intention to acquire the company at a $60 billion valuation. This development has brought attention to the significant loss incurred by FTX's bankruptcy estate, which sold its 5% stake in Cursor for $200,000 in April 2023.
The estate's decision to liquidate the asset at that time has been criticized, particularly in light of the substantial increase in the company's value over the past year. The transaction is part of SpaceX's efforts to enhance its AI capabilities, with founder Elon Musk seeking to close the gap with competitors in the AI coding tools sector.
The deal has also sparked debate about the management of FTX's assets during its bankruptcy, with former CEO Sam Bankman-Fried arguing that the estate's rapid liquidation of assets resulted in the destruction of billions of dollars in value. The Cursor stake's remarkable growth, from a $4 million valuation in 2022 to $60 billion today, serves as a prime example of the potential value that could have been realized if the asset had been retained.
This missed opportunity has significant implications for FTX's creditors, who did not benefit from the substantial increase in the stake's value.