Figma's IPO prospectus, valued at 12.5 billion, exposed: holding 69.5 million dollars Bitcoin ETF

In Figma's cash management portfolio, BTC is listed alongside money market funds, US Treasury bonds, and corporate bonds.

Source: cryptoslate

Compiled by: Blockchain Knight

Figma's initial public offering (IPO) prospectus shows that this design software company holds approximately 69.5 million dollars in the Bitwise BTC exchange-traded fund (BITB).

According to the documents submitted on July 1, the relevant forms list the ETF as a level one liquid security, valued at $69.533 million.

The document also pointed out that the company's board of directors approved a purchase plan of 55 million dollars on March 3, 2024, which means that the investment position has appreciated by approximately 27% since the purchase.

Another note recorded a resolution passed by the board on May 8 to purchase 30 million USD in the stablecoin USDC, "in order to reinvest in BTC in the future," providing the company with an additional amount of USD specifically for future increases in BTC.

By first accumulating stablecoins, the company can flexibly seize conversion opportunities without affecting operational cash flow, and hedge against short-term price volatility risks during the period from board approval to execution.

This disclosure indicates that BTC is alongside money market funds, U.S. Treasury bonds, and corporate bonds in Figma's cash management portfolio.

As of March 31, this investment of $69.5 million accounts for about 4% of Figma's total cash, cash equivalents, and marketable securities of $1.07 billion. The company did not specify the number of BITB shares it holds.

Figma submitted its S-1 form, planning to go public after the failed $20 billion acquisition offer from Adobe in 2023 (currently valued at $12.5 billion).

The submitted document confirms previous reports that the company secretly filed for an IPO in April, at which point the equity market had reopened to venture-backed software companies. Figma joined a group of operating companies that are investing part of their cash reserves in BTC.

The prospectus does not specify a timetable for converting the 30 million USDC into BTC; however, this additional funding allocation indicates that the company views BTC as a strategic reserve rather than a short-term trading asset.

The document did not comment on the hedging or impairment policies. According to U.S. Generally Accepted Accounting Principles (US GAAP), the unrealized gains of exchange-traded open-end index funds classified as securities are included in other comprehensive income, which allows net profit to be unaffected by fluctuations in fair value as long as the relevant shares are not sold.