Crypto Firms Figure, Gemini Boost IPO Prices 15-29% Amid Market Optimism

Cryptocurrency companies have emerged as a key focus in the U.S. IPO market, with Figure Technologies and Gemini both raising their offering prices. This move highlights the increasing interest and investment in the digital asset sector, as traditional financial institutions and investors recognize the potential of blockchain technology and cryptocurrencies.

Figure Technologies, a blockchain-based lending platform, and Gemini, a cryptocurrency exchange, both submitted their IPO applications in August. They plan to list on U.S. exchanges on Thursday and Friday, respectively. On Tuesday, both companies raised their offering prices due to high market demand. Figure increased its share count from 26.3 million to 31.5 million and its price range from 18 to 20 dollars to 20 to 22 dollars per share. Gemini, meanwhile, raised its price range from 17 to 19 dollars to 24 to 26 dollars per share, while maintaining its share count at 16.67 million. Additionally, Gemini announced that Nasdaq has agreed to make a strategic investment of 50 million dollars in the company at its IPO price.

This optimism in the market is driven by several factors. The expectation of interest rate cuts is anticipated to lower financing costs and support stock valuations, which is beneficial for the IPO market. Furthermore, a favorable regulatory environment, increased ETF inflows, and institutional willingness to adopt digital assets have propelled cryptocurrency companies to the forefront of the new stock listings. Last month, the cryptocurrency exchange Bullish saw its stock price surge by over 150% on its first day of trading on the New York Stock Exchange. Circle, the issuer of the stablecoin USDC, also successfully went public earlier this year. These examples demonstrate the growing investor interest in investing in cryptocurrencies through public markets.

These IPOs also signify the maturing of digital asset trading platforms entering traditional capital markets. For Gemini's IPO, major financial institutions such as Goldman Sachs, Morgan Stanley, Citigroup, and Cantor are jointly underwriting the offering. This involvement from established players in the financial sector further validates the growing acceptance and integration of cryptocurrencies into mainstream finance. As more companies in the cryptocurrency space seek to go public, the trend is likely to continue, attracting further investment and attention from the financial community. The success of these IPOs could open the door for other cryptocurrency-related firms to enter the public market, further cementing the sector's role in the broader financial landscape.