In April 2023, FTX's bankruptcy estate sold a 5% stake in AI coding startup Cursor for $200,000, a valuation that has skyrocketed to approximately $3 billion following SpaceX's agreement to acquire the company at a $60 billion valuation. This substantial increase in value has brought attention to the significant gap between the initial sale price and the current worth, with the difference representing a 15,000x return. The deal has also sparked debate about the handling of FTX's assets during its bankruptcy, with founder Sam Bankman-Fried arguing that the estate's decision to liquidate assets too quickly resulted in the destruction of billions of dollars in value. The Cursor stake, which was initially purchased by Alameda Research for $200,000 in 2022, has become a prime example of the potential upside that FTX customers missed out on due to the estate's asset sales.
With SpaceX's acquisition of Cursor, the company's valuation has increased dramatically, leaving many to wonder what could have been if the stake had been held onto. The situation has also raised questions about the timing of the sale, given that FTX's bankruptcy administration has been criticized for its handling of assets.
As the situation continues to unfold, it is likely that the Cursor stake will remain a focal point in discussions about FTX's bankruptcy and the potential value that was lost due to the estate's decisions.