The value of a 5% stake in AI coding startup Cursor, sold by FTX's estate for $200,000 in April 2023, has skyrocketed to approximately $3 billion following SpaceX's agreement to acquire the company at a $60 billion valuation. This development comes as SpaceX prepares for an initial public offering targeting a $2 trillion valuation, with the option to acquire Cursor for $60 billion or pay a $10 billion breakup fee. The investment, initially made by Alameda Research in April 2022, was sold by the FTX estate at the same price, resulting in a significant missed recovery opportunity.
This gap in value has sparked debate, particularly from Sam Bankman-Fried, who argues that the estate's swift liquidation of assets destroyed billions in value, including the substantial upside from the Cursor stake. The timing of this revelation is awkward for FTX's bankruptcy administration, as it underscores the potential consequences of rapid asset liquidation. Meanwhile, FTX customers, who have been repaid in full, did not benefit from the substantial growth in value of assets like the Cursor stake, which could have provided an additional $3 billion in recovery.