In April 2023, FTX's bankruptcy estate sold a 5% stake in AI coding startup Cursor for $200,000, a valuation that has since skyrocketed to approximately $3 billion following SpaceX's agreement to acquire the company at a $60 billion valuation. This staggering increase has brought attention to the significant missed recovery in crypto history. SpaceX's acquisition is part of Elon Musk's strategy to close the gap with competitors in AI coding tools. The deal is contingent on SpaceX's planned initial public offering, which is targeting a $2 trillion valuation.
The crypto connection lies in Alameda Research's initial $200,000 investment in Anysphere, the company behind Cursor, which was later sold by FTX's estate for the same amount. This investment would be worth $3 billion today, representing a 15,000x return. The timing of the sale has raised questions about FTX's bankruptcy administration, with Sam Bankman-Fried arguing that the estate's swift liquidation of assets destroyed billions in value.
The Cursor stake's valuation is a prime example of the potential upside that FTX customers missed out on, with the estate's decision to sell the stake resulting in a forgone recovery of approximately $3 billion.