The recent agreement between SpaceX and AI coding startup Cursor, valued at $60 billion, has brought attention to a notable missed recovery in crypto history. In April 2023, FTX's bankruptcy estate sold its 5% stake in Cursor for $200,000, a stake that would now be worth approximately $3 billion. This significant increase in value is a result of SpaceX's planned acquisition of Cursor, which is part of Elon Musk's strategy to enhance his company's AI coding capabilities and close the gap with competitors like OpenAI and Anthropic. The deal is contingent on SpaceX's planned initial public offering, which is targeting a $2 trillion valuation.
Meanwhile, the sale of the Cursor stake by FTX's estate has raised questions about the timing and value realization of the asset, particularly given the substantial return it could have generated for creditors. This incident has sparked debate about the management of FTX's assets during its bankruptcy and the potential consequences of liquidating assets too quickly, a point argued by Sam Bankman-Fried, the founder of FTX, who is currently serving a federal sentence.