The value of a 5% stake in AI coding startup Cursor, sold by FTX's bankruptcy estate for $200,000 in April 2023, has skyrocketed to approximately $3 billion following SpaceX's recent agreement to acquire the company at a staggering $60 billion valuation. This development has brought attention to the significant gap between the initial sale price and the current worth of the stake, with the latter representing a substantial 15,000x return. The deal is part of Elon Musk's strategy to bridge the gap with competitors in the AI coding tools sector. The crypto community is abuzz with the news, particularly given the timing, as it comes amid arguments from Sam Bankman-Fried that the FTX estate's rapid liquidation of assets during bankruptcy destroyed billions of dollars in potential value.
The sale of the Cursor stake has become a prime example of the kind of value that could have been realized if the estate had held onto its assets, rather than selling them at what turned out to be the bottom of the crypto market.