Galaxy Digital announced a $200 million share repurchase program on February 6, sending the stock up nearly 17% to $19.70.
The buyback comes three days after the company reported a $482 million fourth-quarter loss that drove shares down more than 13%.
The board-approved program allows Galaxy to repurchase Class A common stock over 12 months through open market purchases, private transactions, or Rule 10b5-1 trading plans.
The company faces no obligation to buy back any specific amount and retains flexibility to suspend the program at any time.
Recent Performance Context
Galaxy reported a $241 million net loss for full-year 2025 on February 3, driven by declining digital asset prices and approximately $160 million in one-time charges. The fourth quarter captured Bitcoin's 23% decline and Ethereum's 28% drop during the period.
Galaxy's digital asset holdings decreased 22% quarter-over-quarter as the total crypto market capitalization fell 24%.
The company ended 2025 with $2.6 billion in cash and stablecoins, up $700 million from the third quarter following a $1.3 billion exchangeable note issuance and $325 million equity investment. CEO Mike Novogratz described crypto markets as "in a bear phase" during the earnings call, noting Bitcoin had traded near the lower end of its recent range.
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Buyback Mechanics
Galaxy can purchase up to 5% of outstanding common stock on Nasdaq at program commencement. Repurchases on the Toronto Stock Exchange require separate TSX approval through a normal course issuer bid.
The company stated it will balance share repurchases against continued investment in data center infrastructure, which recently doubled approved power capacity to over 1.6 gigawatts.
Analysts maintain an average price target of $44 for Galaxy shares, suggesting potential upside from current levels. Morgan Stanley holds an Overweight rating with a $36 target, while Goldman Sachs rates the stock Neutral at $24.
The stock trades approximately 36% below its 100-day moving average following recent declines.
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