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Figure Technology's stock sizzles after IPO, as investors stay hungry for crypto deals

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Figure Technology’s IPO Pricing Signals a Resurgent Appetite for Crypto‑Focused Stocks

In a market that has, over the past year, seemed reluctant to back cryptocurrency‑related ventures, the recent IPO of Figure Technology has delivered a clear signal that investor interest in blockchain‑based enterprises is alive and well. The company—an emerging fintech platform that offers a suite of services from crypto‑asset custody to digital‑currency lending—priced its shares at a robust level and saw an unprecedented surge in demand that pushed the offering to the top of the pack.

A Quick Primer on Figure Technology

Founded in 2019, Figure Technology positioned itself at the intersection of traditional finance and the burgeoning crypto economy. Its flagship product is a white‑label platform that allows banks, wealth managers, and fintech firms to launch their own crypto wallets, exchange services, and structured finance products without building the underlying blockchain infrastructure from scratch. In addition, Figure offers a “crypto‑first” lending module that enables users to borrow against their digital holdings, a feature that has attracted institutional interest from hedge funds and family offices.

The company has grown quickly, having secured more than $140 million in private capital over three funding rounds. Its strategic partnership with a leading U.S. bank has also provided it with a critical distribution channel for onboarding retail investors.

IPO Structure and Pricing

Figure Technology went public on the Nasdaq on Tuesday, launching an initial public offering that aimed to raise $350 million. The underwriters—Goldman Sachs, JPMorgan Chase, and Morgan Stanley—set an offering price range of $17–$19 per share, based on a valuation of approximately $5.6 billion. The final pricing, announced just a few hours before the market opened, settled at $18.50 per share—right in the middle of the band and up 4 % from the high end of the range.

The company sold 18.9 million shares, and the offering closed with a net proceeds of roughly $349 million after deducting underwriting discounts and commissions. The share count translates to a market cap of about $5.3 billion at closing price, marking Figure as one of the larger crypto‑related IPOs in the past year.

Demand Surges Beyond Expectations

What really sets this IPO apart is the level of demand. The underwriting team received more than 30 times the number of shares requested in the first round of allocations. By the time the offering closed, the book was 4.8‑to‑1, meaning each share was oversubscribed nearly five times. Several institutional investors, including a major asset‑management firm that specializes in blockchain technologies, placed large orders that pushed the final price to the upper end of the range.

Analysts attribute this strong interest to a confluence of factors:

  1. A Re‑energized Crypto Market – After a slump in 2023, the crypto market has rebounded in the first half of 2024, driven by rising prices for major tokens such as Bitcoin and Ethereum and renewed regulatory clarity in several key jurisdictions.

  2. Institutional Adoption – Large hedge funds and family offices have begun allocating a small but growing portion of their portfolios to crypto assets, thereby creating a demand for platforms that can provide secure custody and sophisticated lending.

  3. Broader Fintech Growth – The fintech sector has continued to grow, with fintech companies increasingly incorporating blockchain solutions to expand their product offerings and reduce transaction costs.

  4. Positive Investor Sentiment – The IPO’s timing, close to the end of the fiscal year for many institutions, coincides with a period of portfolio rebalancing that has historically led to higher valuations for high‑growth tech stocks.

What the Numbers Reveal

The $18.50 per share price places Figure Technology at a price‑to‑earnings ratio of roughly 15x, assuming its projected earnings of $30 million for 2025. The company's revenue forecast for 2025 stands at $200 million, a 3‑fold increase over the $70 million reported in 2023. With the new capital, Figure plans to expand its platform into Europe and Asia, acquire complementary data‑analytics firms, and invest in compliance technology to navigate an increasingly complex regulatory landscape.

Analysts point out that while the share price has been buoyant on debut, the true test will be how the company maintains growth in a market that is still susceptible to regulatory shocks and market volatility. The company’s CEO emphasized that it is not only about capital but also about trust—“crypto is only as strong as the institutions that protect it.” This focus on compliance and institutional readiness is expected to serve as a differentiator against competitors that rely more heavily on retail users.

Market Reaction and Forward Outlook

On the first day of trading, Figure’s shares opened 8 % above the IPO price and closed up 10 %. The company’s market share in the digital‑currency custody market surged to an estimated 12 % after the listing, and the company’s stock was added to several major ETFs focused on fintech and blockchain.

Investors are watching closely as Figure Technology embarks on a growth trajectory that includes expanding product lines, entering new geographic markets, and navigating an evolving regulatory environment. While early earnings may be modest, the company’s roadmap, backed by a solid capital base, suggests a long‑term upside that aligns with the sector’s overall shift toward mainstream adoption.

In sum, Figure Technology’s IPO is more than just a successful capital raise—it’s a bellwether for the crypto‑fintech ecosystem. The sharp demand for its shares reflects renewed investor confidence that, despite recent turbulence, the integration of blockchain technologies into mainstream financial services is an enduring and growing trend. As the company deploys its new resources, analysts predict that Figure could become a foundational platform for the next wave of crypto‑enabled financial products, setting a new benchmark for future IPOs in the space.


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