Galaxy Digital reported a $482 million net loss for Q4 2025, exceeding analyst consensus estimates by $200 million.
The New York-based crypto financial services firm posted losses of $1.08 per share against expectations of 99 cents. Shares fell 5% in pre-market trading Feb. 3.
Founder and CEO Mike Novogratz called Q4 "seller exhaustion" territory during an earnings call. The firm held $2.6 billion in cash and stablecoins at year-end despite quarterly losses.
What Happened
Digital asset price depreciation drove Q4 losses as crypto market capitalization declined 24% during the quarter. Treasury and corporate operations generated adjusted gross profit of negative $454 million from unrealized losses.
Trading volumes fell approximately 40% from Q3 levels following what Galaxy described as a record third quarter. The company posted full-year net losses of $241 million including $160 million in one-time costs.
Asset management operations attracted $2 billion in net inflows during 2025. Total platform assets ended the year at $12 billion representing 34% organic growth.
Read also: BetOnline Adds Sports Fan Token Ahead Of Super Bowl
Why It Matters
Galaxy completed its reorganization as a Delaware corporation and began Nasdaq trading in 2025 while expanding into data center infrastructure. The firm doubled approved data center power capacity to over 1.6 gigawatts following Texas regulatory approvals.
Bitcoin dropped from October highs above $100,000 to trade around $78,000 at year-end. The firm's loan book maintained $1.8 billion in average size during Q4 despite lower digital asset prices.
Galaxy acquired Alluvial Finance during the quarter to expand institutional staking operations. The company held $3.0 billion in total equity as of Dec. 31, 2025.
Read next: XRP Tests $1.50 Support: Negative Funding Rate Signals More Downside Ahead