Figma Invests 4% of Treasury in Bitcoin ETF Ahead of IPO

Figma, a leading digital design technology company, has revealed substantial holdings in Bitcoin through a Bitcoin ETF. The company currently holds approximately $69.5 million worth of Bitwise Bitcoin ETF (BITB) units, as disclosed in its S-1 filing. This investment is part of a broader strategy to diversify its treasury holdings, which include traditional assets such as money market funds, US Treasuries, and corporate bonds.

The $69.5 million stake in the Bitcoin ETF represents about 4% of Figma’s total cash, cash equivalents, and marketable securities, which amounted to $1.07 billion as of March 31. This move reflects a growing trend among corporations to allocate a portion of their treasury to digital assets as a strategic reserve.

In addition to its current holdings, Figma's board has approved an additional purchase of $30 million worth of Bitcoin. This approval, granted on May 8, involves acquiring USDC, a stablecoin, which will later be converted into Bitcoin. This two-step process allows Figma to manage its cash flow more effectively and mitigate short-term price fluctuations in Bitcoin.

Figma's disclosure comes ahead of its planned initial public offering (IPO), which follows the collapse of Adobe’s takeover attempt in 2023. The company confidentially filed for an IPO in April, aligning with the reopening of equity markets for venture-backed software names. This move positions Figma among a growing number of operating companies that are integrating Bitcoin into their treasury management strategies.

The prospectus does not specify a timeline for converting the $30 million USDC tranche into Bitcoin, but the additional allocation indicates that Figma views Bitcoin as a long-term strategic asset rather than a short-term speculative investment. This approach allows the company to benefit from potential long-term appreciation in Bitcoin's value while maintaining liquidity through the stablecoin.

Under US Generally Accepted Accounting Principles (GAAP), unrealized gains on an ETF classified as a security flow through other comprehensive income, insulating net income from mark-to-market volatility unless shares are sold. This accounting treatment provides Figma with a measure of financial stability, as it can hold onto its Bitcoin ETF shares without immediate impact on its reported earnings.

Figma's decision to invest in Bitcoin and its subsequent approval for an additional purchase highlight the company's forward-thinking approach to treasury management. By diversifying its holdings to include digital assets, Figma is positioning itself to capitalize on the growing acceptance and potential appreciation of Bitcoin in the global financial landscape. This strategic move not only enhances the company's financial flexibility but also aligns with the broader trend of corporations exploring alternative investment opportunities beyond traditional assets.