Galaxy Digital shares jump 18% after company approves $200 million buyback
TL;DR
Galaxy Digital shares surged 18% after approving a $200 million share buyback, signaling management's confidence in undervalued stock and strong liquidity despite a quarterly loss.
Key Takeaways
- •Galaxy Digital authorized a $200 million share repurchase program over 12 months, causing an 18% stock price jump.
- •The buyback signals management's view that the stock is undervalued and the company has excess capital to deploy.
- •Despite a $482 million Q4 net loss, Galaxy reported $426 million in adjusted annual gross profit and $2.6 billion in cash/stablecoins.
- •CEO Mike Novogratz emphasized the company's strong balance sheet and flexibility to return capital to shareholders.
- •The announcement boosted investor confidence amid broader positive movements in crypto stocks and traditional markets.
What to know:
- Shares of Galaxy Digital jumped 18% to $19.90 after the company authorized a share repurchase program of up to $200 million over the next 12 months.
- The buybacks, which may be conducted in the open market or through private transactions, signal management’s view that the stock is undervalued and that the firm has excess capital.
- Despite reporting a fourth-quarter net loss of $482 million, Galaxy highlighted $426 million in adjusted gross profit for the year and $2.6 billion in cash and stablecoins, underscoring its liquidity and balance-sheet strength.
- Shares of Galaxy Digital jumped 18% to $19.90 after the company authorized a share repurchase program of up to $200 million over the next 12 months.
- The buybacks, which may be conducted in the open market or through private transactions, signal management’s view that the stock is undervalued and that the firm has excess capital.
- Despite reporting a fourth-quarter net loss of $482 million, Galaxy highlighted $426 million in adjusted gross profit for the year and $2.6 billion in cash and stablecoins, underscoring its liquidity and balance-sheet strength.
Shares of Galaxy Digital (GLXY) jumped 18% to $19.90 on Friday after the company approved a share repurchase program of up to $200 million, giving it authority to buy back its Class A common stock over the next 12 months.
The buybacks may be executed through the open market, privately negotiated transactions or other methods, including trading plans under Rule 10b5-1, the company said. Galaxy added that it retains the right to suspend or discontinue the program at any time, depending on market conditions and other factors.
The announcement signaled confidence from management that Galaxy’s shares are undervalued and that the firm has excess capital to deploy. Share repurchase programs often support stock prices by reducing the number of shares outstanding, which can boost earnings per share and signal balance-sheet strength. In volatile markets, buybacks can also reassure investors that management believes the company’s fundamentals remain intact.
“We are entering 2026 from a position of strength, with a strong balance sheet and continued investment in Galaxy’s growth,” said Mike Novogratz, founder and CEO of Galaxy. “That foundation gives us the flexibility to return capital to shareholders when we believe our stock doesn’t reflect the value of the business.”
The sharp move higher reflects investor approval of that message.
Galaxy reported fourth-quarter earnings earlier this week that initially weighed on the stock. The company posted a net loss of $482 million for the quarter, sending shares down initially. Despite the quarterly loss, Galaxy said it generated $426 million in adjusted gross profit for the full year and ended the year with $2.6 billion in cash and stablecoins, underscoring its liquidity position.
Other crypto stocks and major cryptocurrencies were also green no the day's trading, with bitcoin BTC$68,895.50 climbing back to $70,000 and ethereum ETH$2,027.95 breaking $2,000 over the last 24 hours. Coinbase (COIN) had climbed over 10% to $163. In more traditional markets, the Dow Jones Industrial Average broke 50,000 for the first time.