The recent agreement between SpaceX and Cursor has shed light on a notable instance of a missed recovery in crypto history. In April 2023, FTX's estate sold its 5% stake in Cursor for $200,000, a valuation that has since skyrocketed to approximately $3 billion. This significant increase in value is attributed to SpaceX's intention to acquire Cursor at a $60 billion valuation. The deal is part of Elon Musk's strategy to enhance SpaceX's AI coding capabilities, an area where the company currently lags behind competitors.
The acquisition is contingent upon SpaceX's planned initial public offering, which aims to achieve a $2 trillion valuation. The crypto aspect of this story revolves around Alameda Research's initial investment in Anysphere, the company behind Cursor. In 2022, Alameda invested $200,000 in Anysphere, acquiring a 5% stake in the company.
Following FTX's collapse, the court-appointed estate sold the stake for the same amount, unaware of its potential for significant growth. The substantial difference between the sale price and the current valuation has sparked debate, particularly in light of Sam Bankman-Fried's claims that FTX's estate prematurely liquidated assets, resulting in lost value for creditors. Bankman-Fried has argued that a more patient approach to asset management could have yielded better outcomes for customers.
The trajectory of Cursor's valuation, from its launch in 2023 to its current worth, is among the most remarkable in software startup history. While FTX customers have received their claim values plus interest, they have not benefited from the substantial upside of the assets sold during the bankruptcy process. This example is likely to feature prominently in discussions about the handling of FTX's estate and the consequences of forced asset sales.