Figma’s Stock Price Decline
Figma, the prominent software company known for its design platforms, witnessed a significant decrease in its stock price on Thursday, dropping nearly 20% to around $54.56 as of late afternoon trading. This downturn occurred following the release of its initial quarterly earnings report since becoming a publicly traded entity. Just a month ago, shares had soared to a high of $122 shortly after Figma’s debut on the NYSE, but Thursday’s decline contrasted with a relatively strong 41% year-over-year revenue growth reported at $249.6 million, exceeding expectations slightly.
CEO’s Comments on Bitcoin Investments
CEO Dylan Field addressed Figma’s substantial Bitcoin investments in a CNBC interview, clarifying that the company does not intend to emulate the strategies of firms like MicroStrategy, which is recognized as the largest corporate Bitcoin holder. Field stated,
“This is not a Bitcoin holding company. It’s a design company,”
emphasizing that Figma’s Bitcoin acquisitions serve merely as a hedge for portfolio diversity rather than a central strategy for the firm’s financial growth. The software company revealed in July that it had been maintaining a Bitcoin investment valued at approximately $70 million through a Bitcoin ETF.
Continued Investment in Cryptocurrency
Moreover, Figma indicated in a recent SEC filing that its Bitcoin holdings had surged close to $91 million, reflecting the company’s intent to continue its investment in cryptocurrency despite the clarification of its not being a primary focus. Established in 2012, Figma began as a revolutionary browser-based design tool and has transitioned into a major resource for collaborative product development across diverse teams.
