TLDR
Figure Technologies (FIGR) stock climbed 15% after Stanley Druckenmiller’s Duquesne Capital disclosed a $77 million stake in the blockchain lender
Druckenmiller purchased 2.1 million shares in Q3, making Figure 1.9% of his investment portfolio
Analysts upgraded price targets citing Figure’s capital-light HELOC strategy and AI-powered cost reductions
Figure’s Connect platform now generates 60% of loan originations, up from 46% last quarter
The stock has gained 44% since its September IPO while competing crypto stocks trade below their debut prices
Figure Technologies shares jumped as much as 15% Monday following news that billionaire Stanley Druckenmiller bought into the company. The stock hit $46.46 before settling at $44.45 for a 10% daily gain.
Figure Technology Solutions, Inc. Class A Common Stock, FIGR
Druckenmiller’s hedge fund Duquesne Capital revealed the investment in a 13F filing late Friday. The firm added over 2.1 million Figure shares during the third quarter worth approximately $77 million.
The position makes up 1.9% of Druckenmiller’s total holdings. The veteran investor rarely misses when betting on emerging technology trends.
His timing looks sharp so far. Figure has gained 44% since going public on the Nasdaq in September. Other crypto-related companies that debuted this year are mostly trading below their IPO prices.
Figure was started by Mike Cagney after he left SoFi. The company uses blockchain technology to issue home equity lines of credit and other consumer loans.
Analysts Upgrade Targets
Multiple Wall Street firms lifted their price targets on Figure in recent weeks. Bank of America, Mizuho, and Piper Sandler all published bullish notes after reviewing the company’s third-quarter results.
The analysts focused on Figure’s transition away from holding loans. The company now originates most mortgages through its Figure Connect marketplace platform.
Third-quarter data showed Figure Connect driving 60% of total loan volume. That percentage was just 46% three months earlier.
This capital-light model generates fee income without balance sheet exposure. Figure collects origination fees while partner lenders fund and service the loans.
The strategy improves capital efficiency and reduces risk. Shareholders benefit from better returns without the downside of loan defaults.
Stablecoin Strategy Emerges
Mizuho analyst Dan Dolev highlighted Figure’s stablecoin launch as another catalyst. The company introduced YLDS on its Provenance blockchain network.
YLDS is a yield-bearing stablecoin that pays returns to holders. The product competes for deposits that might otherwise sit in traditional bank accounts or move into other digital dollars.
Figure layers AI technology on top of its blockchain infrastructure. The combination automates loan processing steps that normally require human review.
Lower operating costs translate to competitive rates for borrowers. The efficiency advantage helps Figure grow volume against established lenders.
The stock’s outperformance comes during a weak period for crypto markets. Digital asset prices have struggled in recent months, dragging down related stocks.
New Institutional Interest
Druckenmiller had zero Figure shares before the third quarter. The 13F filing marked his initial investment in the company.
His entry could signal other institutional investors are warming up to blockchain-based financial platforms. Hedge funds often follow each other into new positions.
Trading volume surged Monday as the market digested news of the stake. Investors clearly view Druckenmiller’s backing as a positive signal.
Figure Connect partnerships continue expanding. The platform now works with dozens of lenders to originate loans across multiple states.
Management said the capital-light model will become the dominant part of the business. The company plans to scale Connect volume while keeping its own balance sheet lean.
