Figure Technology made a significant splash in the stock market with its debut on Nasdaq, where its shares surged by 44%, pushing the company’s valuation to $7.62 billion. The New York-based firm saw its stock open at $44 per share, substantially higher than the initial public offering (IPO) price of $25.
The company raised a notable $787.5 million in its upsized IPO, selling 31.5 million shares priced above the earlier anticipated range of $20 to $22 each. This debut comes amid a busy week for U.S. IPOs, marking the most active period since 2021, driven by a strong equity market that has encouraged companies to list amid the recent lifting of tariff-induced volatility that had stalled new issues in April.
Figure’s performance reflects a broader trend of robust first-day gains for cryptocurrency-related companies, signaling a potential shift as the digital-assets sector inches closer to mainstream acceptance. However, the recent decline in stock prices for companies heavily invested in digital assets suggests that investors are increasingly prioritizing solid fundamentals over speculative trends.
Mike Cagney, Figure’s CEO and co-founder, emphasized the firm’s unique positioning within the financial services landscape. He highlighted the limitations of current treasury strategies within the blockchain sector, emphasizing the untapped potential technology has beyond financial instruments.
Since its founding in 2018, Figure has facilitated $6 billion in home equity lending over the past year, marking a 29% increase from the previous year. The company developed the Provenance blockchain, aimed at streamlining the processes of originating, verifying, and processing home-equity loans. Cagney stated that this technology is already in use by 10 of the top 20 mortgage companies, with over 20 large banks also leveraging Provenance for their loan origination needs.
The excitement surrounding Figure’s IPO comes as cryptocurrency exchange Gemini, backed by the Winklevoss twins, prepares for its own public offering in New York. This further illustrates the ongoing wave of interest in crypto-based businesses and their increasing acceptance within traditional financial markets.
