As great as Nvidia’s stock has done, there was a better way to trade its success in powering artificial intelligence applications: buying claims on the bankrupt FTX. Claims on the bankrupt crypto exchange previously run by Sam Bankman-Fried now have a bid-ask between 85 and 90 cents on the dollar. That’s according to data from Cherokee Acquisition, which operates a secondary market, and publishes data on claims of at least $1 million.
Those claims had a bid-ask as low as 6 to 10 cents on the dollar shortly after FTX went bankrupt. The most recent transactions were on Feb. 15, in three deals totaling nearly $2 million. Nvidia’s
NVDA,
+16.40%
stock, which closed Thursday at $785.38 was $154 at FTX’s lowest value on the Cherokee market on Nov. 18, 2022. There are two major reasons behind FTX creditors being in a position to be nearly whole — one is the rebound in cryptocurrency prices, and the other being FTX’s stake in Anthropic, which a judge on Wednesday gave it permission to sell. FTX in 2021 acquired what is now a 7.8% stake in Anthropic, the company behind the ChatGPT rival Claude, for $500 million. FTX said in a court filing that the increased interest in AI and large language models has led to a “significant appreciation” in the value of that stake. FTX has yet to indicate when it plans to sell the stake or if it has a buyer lined up.
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Those claims had a bid-ask as low as 6 to 10 cents on the dollar shortly after FTX went bankrupt. The most recent transactions were on Feb. 15, in three deals totaling nearly $2 million. Nvidia’s
NVDA,
+16.40%
stock, which closed Thursday at $785.38 was $154 at FTX’s lowest value on the Cherokee market on Nov. 18, 2022. There are two major reasons behind FTX creditors being in a position to be nearly whole — one is the rebound in cryptocurrency prices, and the other being FTX’s stake in Anthropic, which a judge on Wednesday gave it permission to sell. FTX in 2021 acquired what is now a 7.8% stake in Anthropic, the company behind the ChatGPT rival Claude, for $500 million. FTX said in a court filing that the increased interest in AI and large language models has led to a “significant appreciation” in the value of that stake. FTX has yet to indicate when it plans to sell the stake or if it has a buyer lined up.
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