Shares of Figure Technologies (FIGR), a blockchain-oriented lending platform co-founded by Mike Cagney of SoFi fame, saw a notable increase of up to 15% on Monday after billionaire investor Stanley Druckenmiller announced a significant new investment in the firm. The stock peaked at $46.46, recently trading around $44.45, which marked a 10% rise. Since its Nasdaq debut in September, FIGR has experienced a remarkable 44% increase, contrasting sharply with many other crypto-related companies that have faced declines since their IPOs.
The boost in Figure’s stock is largely attributed to Druckenmiller’s latest 13F filing, revealing that his Duquesne Capital acquired over 2.1 million shares of Figure during the third quarter, amounting to approximately $77 million and representing 1.9% of his investment portfolio. Renowned for his knack for identifying disruptive technologies and macroeconomic trends, Druckenmiller’s investment could signify a growing interest from institutional investors in financial platforms that integrate blockchain technology and artificial intelligence to enhance consumer lending processes.
Bank of America, Mizhou, and Piper Sandler analysts have recently adjusted their price targets for Figure, emphasizing the company’s transition to a more efficient “capital-light” lending model focused on home equity lines of credit (HELOCs). In its third-quarter earnings announcement, Figure indicated a promising forecast, anticipating that its Figure Connect platform will contribute 60% of its total loan volume, an increase from 46% in the previous quarter.
Mizhou analyst Dan Dolev highlighted the firm’s innovative approach with the launch of YLDS, a yield-bearing stablecoin based on the Provenance blockchain. This strategy is aimed at curbing capital outflows from conventional banks to digital dollar solutions, positioning Figure as a forward-thinking player in the evolving financial landscape. As institutions show increasing trust in blockchain-based financial solutions, Figure appears well-positioned for growth in the coming months.