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. This development has brought attention to the significant losses incurred by FTX's estate due to the sale of its assets, including the Cursor stake, during the bankruptcy process. SpaceX's acquisition plans, which include the option to buy Cursor for $60 billion or pay a $10 billion breakup fee, have shed light on the enormous potential value that could have been realized by FTX's creditors if the estate had held onto the stake. The investment, initially made by Alameda Research in April 2022, had the potential to yield a 15,000x return, but the benefits of this growth were not realized by the creditors.
This situation has raised questions about the handling of FTX's assets during the bankruptcy and the potential consequences of liquidating assets too quickly. The case has sparked debate, with some arguing that the estate's decisions destroyed billions of dollars in value, while others point to the fact that FTX customers have been repaid in full, albeit without the potential upside from the appreciation of the assets.