TLDR
- Galaxy Digital has authorized a $200M share repurchase program to buy back its Class A common stock.
- The repurchase program will span 12 months and may be conducted on the open market or through private transactions.
- Galaxy’s buyback plan is flexible and does not obligate the company to repurchase any shares.
- The program is subject to approval for purchases made on the Toronto Stock Exchange.
- Mike Novogratz, Galaxy’s CEO, expressed confidence in the company’s position as it enters 2026.
Galaxy Digital Inc. (Nasdaq: GLXY) has authorized a $200 million share repurchase program. The program will allow the company to buy back its Class A common stock over the next 12 months. Galaxy intends to use the repurchase program to return capital to shareholders when its stock is considered undervalued.
Details of the Share Repurchase Program
Galaxy announced that it could buy back shares on the open market or through privately negotiated transactions. The repurchases will follow the guidelines of Rule 10b5-1 trading plans and comply with applicable securities laws and exchange rules. The buyback program remains flexible, with no obligation for Galaxy to repurchase any shares.
The program has a duration of 12 months and will be subject to approval if repurchases are made on the Toronto Stock Exchange. If shares are repurchased on Nasdaq, purchases will be limited to 5% of Galaxy’s outstanding shares at the beginning of the program. The company did not specify when the repurchases would begin or how much of the $200 million would be utilized.
Galaxy’s Financial Position and Strategy
Mike Novogratz, Galaxy’s founder and CEO, expressed confidence in the company’s position for 2026. “We are entering 2026 from a position of strength,” said Novogratz. He added that the company’s balance sheet and ongoing investments provide flexibility for capital return when appropriate.
This move follows a challenging financial performance for Galaxy, which reported a net loss of $482 million for Q4 2025. For the full year, the company posted a loss of $241 million. These losses were attributed to a decline in digital asset prices and around $160 million in one-time costs.
Despite the financial losses, Galaxy has seen an uptick in its stock price. Shares have risen by approximately 17% in the past 24 hours. However, over the past month, the stock remains down by around 25%, reflecting the broader trend in the crypto-related equities market.
Industry Impact and Market Trends
The decline in Galaxy’s share price mirrors a larger pullback in the cryptocurrency market. Bitcoin prices, in particular, have fallen from highs of over $97,000 in January to a low of approximately $60,300. Other companies in the crypto sector have also seen steep declines, including Coinbase Global and Circle Internet Group, both of which reported significant losses over the past month.
In addition, companies with substantial Bitcoin holdings, such as MicroStrategy, have been hit hard by the falling prices. Strategy, the largest public holder of Bitcoin, has seen its stock drop by nearly 68% over the past six months. Bitcoin mining companies, including Marathon Digital Holdings and IREN Limited, have also experienced declines in their stock values.
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