Druckenmiller's $77M Bet Ignites Blockchain Lending Flywheel, Analysts Boost Targets

Figure Stock Jumps as Druckenmiller Invests $77M, Analysts Raise Price Targets

Shares of Figure Technology Solutions (NASDAQ: FIGR) surged as much as 15% on Monday after billionaire investor Stanley Druckenmiller disclosed a $77 million stake in the blockchain-focused lending platform, signaling growing institutional confidence in the company's capital-light business model and tokenization strategies. The stock, which has risen 44% since its September IPO, now trades at $44.45, up 10% from its $40.24 level earlier in the week. Piper Sandler and Mizuho both raised their price targets for FIGR to $55 and $56, respectively, following the company's third-quarter earnings report, which showed 70% year-over-year growth in consumer loan volume to $2.5 billion.

Druckenmiller's investment, revealed in a 13F filing, added 2.1 million shares to his portfolio, representing 1.9% of his holdings. The hedge fund titan, known for early bets on disruptive technologies, cited Figure's use of AI and blockchain to streamline lending and its shift toward home equity lines of credit (HELOCs) as key drivers of value. "This is a rare opportunity where institutional investors are aligning with a company that's redefining financial infrastructure," said one analyst.

The price target upgrades reflect Figure's strong Q3 performance. The company reported $156.4 million in revenue and $89.8 million in net income, surpassing Wall Street estimates by 40% and 200%, respectively. EBITDA margins expanded to 55.4%, up from 44.9% a year prior, as variable expenses dropped to 28% of revenue. Piper Sandler highlighted Figure's addition of 78 origination partners and $80 million in new loan product volume as catalysts for growth.

Analysts also praised Figure's capital-light model, which leverages automation and AI to scale operations without proportional cost increases. "The company's ability to grow loan volumes while maintaining disciplined expenses is a structural advantage," noted Mizuho's Dan Dolev, who raised his price target to $56 according to analyst commentary. Figure's EBITDA of $86.39 million and a P/E ratio of 191.71 underscore high-growth expectations despite the stock's current premium valuation.

Beyond traditional lending, Figure is expanding into real-world asset (RWA) tokenization, with its $YLDS stablecoin gaining traction on the Solana blockchain. The yield-bearing stablecoin, backed by U.S. Treasuries, now supports on-chain lending and settlement applications, including cross-border remittances and trade settlements. The company's AAA-rated securitization of blockchain-based loans marks a first in the sector, further validating its RWA leadership.

While loan supply constraints remain a near-term risk, Piper Sandler and Mizuho expressed optimism about Figure's long-term potential. "The company is building a flywheel effect through partner growth, product diversification, and technological innovation," said one strategist. With institutional backing from Druckenmiller and a 60% of loan volume now driven by its Figure Connect platform, the firm appears poised to capitalize on the tokenization trend as crypto markets stabilize according to market analysis.