The value of FTX's stake in Cursor, an AI coding startup, 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 a significant missed recovery in crypto history, as FTX's estate had sold its 5% stake in Cursor for $200,000 in April 2023. The acquisition is part of Elon Musk's strategy to close the gap with competitors in the AI coding tools space.
The deal is contingent on SpaceX's planned initial public offering, which is targeting a $2 trillion valuation. The crypto angle stems from Alameda Research's initial $200,000 investment in Anysphere, the company behind Cursor, in April 2022.
The investment represented a 5% stake in the company at a $4 million valuation. After FTX's collapse, the court-appointed estate sold the stake for the same $200,000, resulting in a missed opportunity for creditors. This incident has sparked debate about the handling of FTX's assets during the bankruptcy process, with founder Sam Bankman-Fried arguing that the estate destroyed billions in value by liquidating assets too quickly. The timing of the SpaceX acquisition has awkward implications for FTX's bankruptcy administration, and the significant increase in value is likely to feature in ongoing discussions about the case.