Figma, a popular design software company, recently disclosed in its IPO prospectus that it holds a significant investment in the Bitwise Bitcoin ETF (BITB). The document revealed that Figma has approximately $69.5 million worth of BITB in its portfolio, classified under level-1 marketable securities.
The company’s board authorized a $55 million purchase of the Bitcoin ETF on March 3, 2024, indicating that the position has since appreciated by around 27%. Additionally, a separate board resolution on May 8 approved the purchase of $30 million of USDC, a stablecoin, with the intention of reinvesting it into Bitcoin at a later date. This move provides Figma with a pool of dollar-pegged capital for future Bitcoin accumulation, allowing the company to strategically time conversions without disrupting its operating cash flow.
By including Bitcoin in its cash management mix alongside money market funds, US Treasuries, and corporate bonds, Figma demonstrates a growing trend among operating companies to allocate part of their treasury to the digital asset. The $69.5 million stake in BITB represents approximately 4% of Figma’s total cash, cash equivalents, and marketable securities reported as of March 31.
Figma’s IPO filing comes after the collapse of Adobe’s attempted takeover in 2023 and confirms earlier reports of the company confidentially filing for an IPO in April. The prospectus does not provide a specific timeline for converting the USDC tranche into Bitcoin, suggesting that Figma views its investment in the digital asset as a strategic reserve rather than a short-term trade.
It’s worth noting that the filing does not mention any hedging or impairment policies. Under US GAAP accounting standards, unrealized gains on an ETF classified as a security typically flow through other comprehensive income, shielding net income from mark-to-market volatility unless the shares are sold.
Overall, Figma’s decision to invest in Bitcoin reflects a growing trend of companies diversifying their treasury holdings with digital assets. This move not only signals confidence in the long-term potential of Bitcoin but also underscores the importance of strategic financial planning in today’s evolving market landscape.