TLDR;
The video discusses the upcoming IPO of Figure Technologies, a blockchain-based company aiming to revolutionize capital markets. It also touches on other crypto-related companies going public, including a merger involving Trump Media and Crypto.com. The speaker highlights Figure's potential, its financials, and the CEO's vision while also expressing concerns about its high valuation and the historical performance of crypto IPOs.
- Figure Technologies is set to go public with a $4.3 billion valuation.
- The company aims to disrupt traditional financial markets using blockchain technology.
- A merger involving Yorkville Acquisition Corp, Trump Media, and Crypto.com is also discussed.
- The speaker expresses concerns about the overvaluation of Figure's IPO.
Introduction and Channel Overview [0:00]
The speaker introduces the video topic, focusing on the highly anticipated IPO of Figure Technologies. He encourages new viewers to subscribe, noting that the channel covers a wide range of stock market topics, not just IPOs. He references previous successful stock picks like Rock Lot and ESTs as examples of the channel's broader coverage and insights.
Figure Technologies: Overview and Vision [1:03]
Figure Technologies is targeting a $4.3 billion valuation as it prepares to go public, joining other crypto companies like Circle and Bullish. The company, co-founded in 2018 by Mike Cognney, operates as a blockchain-native platform supporting lending, trading, and investing in consumer credit and digital assets. Figure has originated $16 billion in home equity and pioneered loans on the blockchain, including AAA-rated securitizations of blockchain assets. The company aims to create a decentralized custody exchange, initially for crypto, eventually expanding to lending, asset-backed securities, and public equity.
Disruptive Potential and Market Impact [3:39]
Figure Technologies aims to disrupt traditional financial markets by eliminating the need for introducing brokers like Schwab and Robinhood. The CEO believes users will be able to directly attach their wallets to exchanges for trading. This level of disruption faces resistance but is seen as inevitable. The speaker asks viewers for their opinions on this potential shift.
Upcoming IPOs and Market Movers [4:23]
The speaker mentions other upcoming IPOs, including Black Rock and Gemini Space, and references a previous video on CLA. He also highlights Legions Corp as a top IPO pick for the year and mentions VIA Transportation Corporation. He emphasizes that Figure is building the future of capital markets using blockchain technology, with offerings including loan origination, home equity loans, electronic marketplaces, stablecoins, and digital asset registry technologies.
Yorkville Acquisition Corp. and Trump Media Group [5:46]
Yorkville Acquisition Corp., a special purpose acquisition company (SPAC), announced its ticker symbol, MCGA, ahead of its business combination with Trump Media Group and Crypto.com. The speaker predicts that the SPAC's stock price will increase significantly upon the business combination, potentially reaching $15-17. The three companies will merge to establish Trump Media Group Crow Strategy Incorporation, a digital asset treasury company, which the speaker believes will initially perform well.
Figure Technologies: Financials and Valuation Concerns [7:30]
Figure Technologies has secured $700 million in investments from firms like Morgan Creek Digital, DCM Ventures, and Jump Crypto. Its revenue has grown from over $200 million in 2023 to a projected $375 million in 2025, with net income turning positive in 2024 and expected to reach $62 million in 2025. While free cash flow is negative but improving, the company carries a total debt of $453 million. The speaker expresses concern about Figure's $4.3 billion valuation, considering its revenue and debt levels, deeming it overvalued, which is common for IPOs.
Final Thoughts and Market Outlook [9:03]
The speaker notes the historical failures of many crypto-related companies and their impact on investors. While he believes Figure Technologies will perform well, he advises caution and suggests taking profits if significant gains are achieved on day one, drawing a comparison to Bullish's post-IPO performance. He concludes by thanking viewers, encouraging subscriptions, and promoting the channel's Patreon/Discord community.