Figure Technology Solutions Aims to Raise 1 Billion Dollars in Fall IPO

Figure Technology Solutions, a blockchain lending company, is planning to launch an initial public offering (IPO) this fall. The company is capitalizing on a more favorable crypto environment and strong investor interest. Co-founder Mike Cagney recently confirmed this news, highlighting the company's ambition to raise up to 1 billion dollars through the IPO.

Figure's previous attempt to go public during the Biden administration was hindered by regulatory concerns over the use of the term "blockchain" in its filings. However, the current administration's more crypto-friendly stance has emboldened the company to proceed with its IPO plans. The success of Circle, a stablecoin issuer that went public in June and saw its stock price increase eightfold, has also inspired Figure to pursue this path.

Figure has already begun negotiations with major investors, including BlackRock, SoftBank, and Tiger Global Management. These companies are known for their support of large technology projects, and their backing could significantly bolster Figure's IPO prospects. Cagney emphasized that the company's revenue and earnings are on the rise, with an annualized revenue of approximately 355 million dollars in the first quarter, marking a 35% increase from the previous year. The company's earnings before interest, tax, depreciation, and amortization (EBITDA) were around 121 million dollars.

The growth of Figure's business is driven by its core product: the issuance of Home Equity Lines of Credit (HELOCs). Rising home prices have enabled homeowners to access more equity, leading many to opt for HELOCs instead of renegotiating their low-interest mortgages. This trend has fueled Figure's business growth. Additionally, Figure uses blockchain technology to reduce costs by storing all loan records in a single database, minimizing expenses such as audits. The company's partnerships with Credit Karma and Guaranteed Rate have helped increase its lending capital by 50% last year, totaling 5.1 billion dollars.

Beyond lending, Figure securitizes loans by reselling them to investors and earning fees. The company reports that its credit loss rate remains at or below 1%. Figure also operates a cryptocurrency exchange, although its primary income comes from home loans facilitated through blockchain technology. The company is targeting an IPO valuation between half a billion and one billion dollars.

Figure's IPO plans are closely tied to the rapid evolution of the crypto market. The company aims to leverage its technology, high revenue growth, and strategic partnerships to achieve success. As the broader financial market shows increasing interest in blockchain technology and digital assets, Figure's IPO is poised to attract significant investor attention this fall.