Galaxy Digital Approves $200M Stock Buyback Despite Recent Losses

Galaxy Digital has approved a major stock buyback of up to $200 million, signaling confidence in its long-term future even after posting significant losses.

Key Takeaways

• Galaxy Digital will repurchase up to $200 million of its Class A common stock over the next 12 months.
• The buyback comes shortly after the firm reported a $482 million Q4 loss and $241 million annual loss.
• CEO Mike Novogratz said the move reflects the company’s balance sheet strength and belief the stock is undervalued.
• Shares rose nearly 17 percent in 24 hours after the announcement, despite being down about 25 percent for the month.

What Happened?

Galaxy Digital Holdings Ltd. has authorized a share repurchase program allowing it to buy back up to $200 million of its publicly traded Class A common stock. The announcement came just days after the company reported major financial losses for the fourth quarter and full year of 2025.

Despite this, Galaxy’s leadership remains optimistic. CEO Mike Novogratz emphasized that the company is entering 2026 “from a position of strength” and sees the current stock price as undervaluing the business.

Details of the Buyback Program

The buyback program is effective for 12 months and will allow Galaxy to purchase shares on both the Nasdaq and the Toronto Stock Exchange, depending on regulatory approvals. If conducted on Nasdaq, repurchases are limited to 5 percent of the company’s outstanding shares at the program’s start.

According to the official announcement, repurchases may occur through:

• Open market purchases
• Privately negotiated transactions
• Rule 10b5-1 trading plans

Galaxy Digital noted that the program is not binding, meaning the company is not obligated to repurchase any set number of shares. The amount and timing of the purchases will depend on business, market, legal, and regulatory conditions.

Financial Backdrop and Market Reaction

The announcement follows a tough quarter for Galaxy. The company posted a net loss of $482 million for Q4 2025 and a $241 million loss for the year. Contributing factors included depressed digital asset prices and roughly $160 million in one-time costs.

Still, the buyback news sparked a positive reaction in the market. Galaxy’s stock jumped nearly 17 percent within 24 hours, a notable recovery despite being down around 25 percent over the past month.

Image Credit – Google Finance

Technically, the stock remains under pressure:

• Trading 31.4 percent below its 20-day simple moving average
• 36.4 percent below its 100-day SMA
• RSI at 27.54, indicating the stock is oversold
• MACD remains below its signal line, reflecting bearish sentiment

This combination points to a potential rebound opportunity while also cautioning investors about ongoing volatility.

CoinLaw’s Takeaway

In my experience, a buyback of this size often sends a strong signal of management confidence, especially during rough market conditions. While Galaxy is facing real challenges, I found the timing of this move strategic. They are telling the market, “We believe in our future and are willing to put real money behind it.” That speaks volumes.

The fact that Galaxy is not committing to a fixed number of shares gives them financial flexibility, while still giving investors a morale boost. However, with technical indicators still bearish, I’d watch closely for short-term volatility before jumping in.

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