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 agreement to acquire the company at a $60 billion valuation. This development has brought attention to the significant gap between the initial sale price and the current valuation, with the difference representing a substantial 15,000% return. The investment was initially made by Alameda Research, a trading firm founded by Sam Bankman-Fried, in April 2022, with the company's cap table revealing the crypto angle.
The timing of the sale has sparked debate, particularly given Bankman-Fried's arguments that FTX's estate destroyed billions in value by liquidating assets too quickly during the bankruptcy. TheCursor stake's trajectory, from its launch in early 2023 to its current valuation, is among the steepest in software startup history, and its value is likely to feature prominently in discussions about the estate's handling of assets and the potential for a pardon for Bankman-Fried.