In April 2023, FTX's bankruptcy estate sold a 5% stake in AI coding startup Cursor for $200,000. Following SpaceX's agreement to acquire the company at a $60 billion valuation, that same stake would now be worth approximately $3 billion. The deal marks a substantial missed recovery for FTX's creditors, with the gap between the sale price and current valuation representing a 15,000% return. This development comes as former FTX CEO Sam Bankman-Fried argues that the estate's rapid liquidation of assets destroyed billions in value, a claim that is likely to be revisited in light of the Cursor stake's massive appreciation.
The acquisition is part of Elon Musk's efforts to close the gap with competitors in AI coding tools, with SpaceX planning to acquire Cursor for $60 billion or pay a $10 billion breakup fee. The sale of the Cursor stake has significant implications for FTX's bankruptcy administration and highlights the potential consequences of forced asset sales during the bankruptcy process.