Blockchain lender Figure Technology made waves in the financial world with its public debut on Nasdaq, raising an impressive $787.5 million through its IPO. Shares opened at $25 but quickly surged nearly 30%, reaching approximately $32 by Thursday afternoon. This rapid increase values the company at nearly $6 billion, with its trading symbol designated as FIGR.
Founded in 2018, Figure’s business model centers on the innovative use of blockchain technology to streamline the mortgage process. The company claims that its blockchain solutions expedite both the granting and funding of home loans. According to recent filings with the Securities and Exchange Commission, Figure facilitated roughly $6 billion in loans from June of last year to June of this year. Additionally, between January and June, the company reported revenues exceeding $190 million, along with a net income nearing $30 million.
In a letter addressed to investors in the company’s prospectus, co-founder and CEO Mike Cagney emphasized that the IPO is just the beginning of a broader vision to integrate blockchain across all facets of capital markets.
Figure’s entry into the public markets comes at a time when interest in IPOs, particularly among cryptocurrency firms, is gaining momentum. The buzz has intensified following the successful IPO of stablecoin issuer Circle in June, which raised over $1 billion and briefly saw its market capitalization peak close to $80 billion, although it has since settled around $30 billion.
This burgeoning interest has attracted other crypto companies looking to go public. Recently, the crypto exchange Bullish, helmed by former New York Stock Exchange president Tom Farley, completed its own IPO in August, achieving a market capitalization of approximately $8.5 billion. Moreover, other companies, such as Gemini, founded by the Winklevoss twins, are preparing to list on the Nasdaq soon, while Grayscale and Kraken have also expressed intentions to explore public offerings.
Cagney’s relationship with public markets is not new; he previously co-founded and served as CEO of SoFi, which became public in 2021. His tenure at SoFi was marred by controversy, as he left the company in 2017 amid allegations of sexual harassment. In a recent appearance at a Fortune conference, Cagney reflected on this experience, emphasizing the importance of fostering a positive company culture at Figure.
He acknowledged the challenges faced at SoFi, stating, “At SoFi, there were deficiencies in our culture.” He expressed optimism about creating a more nurturing environment at Figure, aiming to enhance the company’s culture as it continues to grow.
As the crypto landscape evolves and gains credibility, Figure Technology’s successful IPO marks a significant milestone in the integration of blockchain technology into mainstream finance, making it a company to watch in the coming years.
