In a staggering turn of events, a 5% stake in AI coding startup Cursor, sold by FTX's bankruptcy estate for $200,000 in April 2023, would now be valued at approximately $3 billion following SpaceX's agreement to acquire the company at a $60 billion valuation. This deal, struck by Elon Musk's SpaceX, aims to close the gap with competitors in the AI coding tools sector. The acquisition is contingent on SpaceX's planned initial public offering, which targets a $2 trillion valuation, with a $10 billion breakup fee if the deal falls through. The crypto connection lies in Alameda Research's $200,000 investment in Anysphere, the company behind Cursor, in April 2022, which purchased roughly 5% of the company at a $4 million valuation.
After FTX's collapse, the court-appointed estate sold the Cursor stake for the same $200,000, resulting in a missed opportunity for creditors. This oversight has sparked debate, particularly from Sam Bankman-Fried, who argues that the estate's swift asset liquidation destroyed billions in value.
The timing of this revelation is awkward for FTX's bankruptcy administration, as it underscores the potential consequences of rapid asset sales. Meanwhile, FTX customers have been reimbursed in full, but they have not benefited from the substantial upside of the assets sold during the bankruptcy process, including the Cursor stake, which now represents a $3 billion loss.