Figure Technology Solutions Targets $5-$10 Billion IPO Amid Crypto Boom

Figure Technology Solutions, a startup specializing in blockchain-based home loans and cryptocurrency exchange, has announced its intention to go public in the fall, with a target to raise between $5 billion and $10 billion. The company's founder, Mike Cagney, attributes this decision to the favorable policy environment for the cryptocurrency industry and the heightened interest from investors. This move comes after Figure faced challenges in its previous attempt to go public during the Biden administration due to issues with its filing language.

Figure aims to replicate the success of Circle, a stablecoin company that recently went public. The startup has already made preliminary contacts with potential investors, including BlackRock, SoftBank, and Tiger Global. In the first quarter, Figure reported an annualized revenue of $3.55 billion, reflecting a 35% year-over-year increase, and an EBITDA of $1.21 billion.

The majority of Figure's revenue is derived from its Home Equity Line of Credit (HELOC) business. This segment has benefited from rising home prices and homeowners' reluctance to refinance at higher interest rates. By utilizing blockchain technology to reduce loan costs and partnering with companies like Credit Karma and Guaranteed Rate, Figure saw a 50% increase in loan volume to $5.1 billion last year. Additionally, the company generates fees through the securitization of loans, maintaining a loan credit loss rate of 1% or lower.

Figure's decision to go public underscores the growing interest in the cryptocurrency industry and the potential for blockchain technology to disrupt traditional financial services. The company's focus on HELOC and its strategic partnerships position it well to capitalize on the current market trends. With a strong financial performance and a clear growth strategy, Figure is poised to attract significant investment as it prepares for its IPO.