Figure (FIGR) Stock: Billionaire Druckenmiller Drops $77M on Blockchain Lender

TLDR

Table of Contents

Figure Technologies (FIGR) shares surged 15% after billionaire Stanley Druckenmiller revealed a $77 million investment through his Duquesne Capital fund
The position includes over 2.1 million shares and represents 1.9% of Druckenmiller’s total portfolio holdings
Wall Street analysts from Bank of America, Mizuho, and Piper Sandler upgraded their price targets for Figure
The company’s shift to a capital-light HELOC lending model is driving 60% of loan volume through its Figure Connect platform
Figure launched YLDS stablecoin on Provenance blockchain while stock outperforms crypto sector with 44% gains since September IPO

Figure Technologies stock jumped 15% Monday after legendary investor Stanley Druckenmiller disclosed a major stake in the blockchain-based lending company. Shares reached $46.46 before closing at $44.45, marking a 10% gain for the session.

Figure Technology Solutions, Inc. Class A Common Stock, FIGR

Druckenmiller’s Duquesne Capital Management filed a 13F form Friday showing the purchase of more than 2.1 million Figure shares during the third quarter. The position is valued at roughly $77 million and accounts for 1.9% of his portfolio.

The billionaire investor has a track record of spotting disruptive technology trends before they go mainstream. His entry into Figure signals institutional money is getting comfortable with companies mixing blockchain and AI for consumer lending.

Figure went public on the Nasdaq in September. The stock has climbed 44% since its debut while other crypto-related companies that launched IPOs this year trade underwater.

Mike Cagney founded Figure after co-founding SoFi. The platform specializes in home equity lines of credit backed by blockchain infrastructure.

Wall Street Gets Bullish

Bank of America, Mizuho, and Piper Sandler all raised their price targets on Figure recently. The analysts like the company’s move toward a capital-light business structure.

Figure’s third-quarter earnings showed its Figure Connect platform now generates 60% of loan volume. That’s up from 46% the previous quarter.

The capital-light approach lets Figure collect origination fees without holding loans on its books. This strategy reduces balance sheet risk and boosts returns.

Mizuho analyst Dan Dolev called out Figure’s new stablecoin as a game changer. The company rolled out YLDS, a yield-bearing stablecoin on its Provenance blockchain.

YLDS targets customers who might pull money from traditional banks into digital dollars. Holders earn a return while keeping their funds stable and dollar-pegged.

Blockchain Tech Cuts Costs

Figure uses AI and blockchain to automate lending processes. The technology eliminates manual work in loan underwriting and servicing.

This automation keeps costs down compared to traditional lenders. Lower expenses mean better margins on each loan originated through the platform.

The stock’s performance stands out during a rough patch for crypto markets. Digital asset prices have stayed weak in recent months, pulling down sector valuations across the board.

Druckenmiller had no previous position in Figure before the third quarter. The 13F filing marked his first investment in the company.

Trading volume spiked Monday as news of the institutional backing spread. The disclosure came through Duquesne Capital’s required quarterly regulatory filing.

Figure’s Figure Connect platform partners with other lenders to originate loans. This marketplace approach scales volume without requiring more capital from Figure itself.

The company reported the shift in its lending mix is accelerating. Management expects the capital-light model to dominate its business going forward.

✨ Limited Time Offer