Galaxy Digital greenligts $200M Class A stock repurchase initiative
Galaxy's 12-month share buyback plan arrives amid falling valuations for crypto-related equities following Bitcoin's recent downturn.
Galaxy Digital Inc. (Nasdaq: GLXY) has given the green light to a stock repurchase initiative valued at up to $200 million, providing the firm with authority to acquire its Class A common stock throughout the coming 12-month period.
Based on a statement from the company, the stock acquisitions could take place through open market purchases or via transactions negotiated privately, potentially including arrangements under Rule 10b5-1 trading plans, while remaining compliant with relevant securities regulations and exchange requirements. The initiative does not create any obligation for Galaxy to acquire shares and can be paused or terminated at the company's discretion.
The share repurchase initiative carries a 12-month duration and, should transactions occur on the Toronto Stock Exchange, will require regulatory clearance through a normal course issuer bid process. Stock acquisitions executed on Nasdaq would face a ceiling of 5% of Galaxy's shares outstanding at the program's commencement, the announcement indicated.
Galaxy maintains listings on both the Nasdaq and the Toronto Stock Exchange and conducts operations spanning digital asset trading, asset management, staking, custody services and data center infrastructure. The firm has not revealed what portion of the $200 million authorization it plans to deploy, nor has it indicated a timeline for when share acquisitions might commence.
Mike Novogratz, founder and CEO of Galaxy, stated the company is "entering 2026 from a position of strength," further noting that its balance sheet and continuing investments provide it with the flexibility to distribute capital when management determines the stock is trading below its intrinsic value.
The announcement arrives three days following Galaxy's disclosure of a net loss totaling $482 million for the fourth quarter of 2025 and a $241 million deficit for the complete year, attributed to declining digital asset valuations and approximately $160 million in non-recurring expenses.
As of this writing, Galaxy's stock price had climbed roughly 17% during the previous 24 hours, though it continued to trade approximately 25% lower for the month, based on data from Yahoo Finance.
Market downturn impacts crypto stocks
The recent decline in Galaxy's stock price mirrors a wider retreat throughout cryptocurrency-linked public companies, as Bitcoin has tumbled during the past month from highs exceeding $97,000 in January to reach a trough of approximately $60,300 on Thursday.
Coinbase Global (COIN) stock experienced a decline of roughly 36% throughout the preceding month, while Circle Internet Group (CRCL) dropped approximately 34% during the identical timeframe and roughly 65% across six months.
Strategy (MSTR), which holds the distinction of being the largest publicly-traded Bitcoin holder with 713,502 BTC on its balance sheet, has experienced a decline of approximately 20% during the past month and close to 68% across six months. Cointelegraph's Thursday reporting indicated that the company recorded a $12.4 billion net loss during the fourth quarter of 2025.
Stocks of Bitcoin mining companies have similarly experienced downward pressure, with MARA Holdings (MARA) declining roughly 27% throughout the past month and approximately 52% during the preceding six-month period, while IREN Limited (IREN) registered a decline of about 8% for the month.