Figure Technology (FIGR) experienced a remarkable debut on Nasdaq, witnessing a 44% surge on its first day of trading, which propelled its market value to an impressive $7.62 billion. The blockchain-based lender successfully raised $787.5 million by issuing 31.5 million shares, with the stock opening at $44—substantially higher than its initial public offering (IPO) price of $25. This offering price exceeded a revised range of $20 to $22, reflecting strong investor interest during a significant week for U.S. IPOs, the largest since 2021.
Founded in 2018 by Mike Cagney, who previously co-founded SoFi Technologies, Figure is positioned at the intersection of housing finance and blockchain technology. The company reported $6 billion in home equity loans for the year ending June 30, marking a 29% increase compared to the previous year. Cagney highlighted that ten of the top twenty mortgage companies in the United States now utilize Figure’s Provenance blockchain for processing and verifying loans.
This adoption is further supported by insights from early investor David Chao of DCM Ventures, who noted that over twenty major banks have integrated Provenance into their operations. This growing trend suggests a rising acceptance of blockchain technology within the financial services industry.
Figure’s successful launch comes on the heels of a series of favorable IPOs from cryptocurrency-related firms, despite a declining stock performance from several companies heavily invested in digital assets. Cagney emphasized that Figure’s business model focuses on lending and infrastructure rather than treasury speculation, asserting that the long-term potential for blockchain lies in its financial applications.
As the IPO market regains momentum, investors will be particularly attentive to Figure’s first earnings report as a publicly traded entity, keen to assess loan growth and the ongoing adoption of the Provenance platform.
