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. Elon Musk's SpaceX has secured the right to purchase Cursor for $60 billion or pay $10 billion if the full acquisition does not proceed, with the aim of closing the gap with competitors in the AI coding tools space.
The deal has brought attention to the crypto aspect, as Alameda Research, founded by Sam Bankman-Fried, had invested $200,000 in Anysphere, the company behind Cursor, in April 2022. This investment, which bought roughly 5% of the company at a $4 million valuation, was sold by the FTX estate for the same amount in 2023, resulting in a significant missed recovery opportunity. The timing of the sale has raised questions about the FTX bankruptcy administration, with Bankman-Fried arguing that the estate destroyed billions in value by liquidating assets too quickly.
The Cursor stake's valuation has increased by approximately 15,000% since its sale, representing a substantial forgone recovery for FTX customers. While customers have been repaid in dollar terms under the bankruptcy distribution plan, they have not received the upside from the assets' increased value, including the $3 billion represented by the Cursor stake.