Galaxy Digital Authorizes $200M Share Buyback as Stock Rebounds

Galaxy Digital Inc. (Nasdaq: GLXY) has authorized a $200 million share repurchase program, allowing the company to buy back its Class A common stock over the next 12 months. The company announced that the repurchase program may be conducted on the open market or through privately negotiated transactions, including under Rule 10b5-1 trading plans.

This move is viewed as a sign of confidence in the company's long-term strategy and value. Galaxy Digital's CEO, Mike Novogratz, stated that the company is entering 2026 from a position of strength and that the share repurchase program underscores their confidence in the company’s future.

The buyback plan includes both Nasdaq and Toronto Stock Exchange listings. Repurchases made on Nasdaq will be capped at 5% of Galaxy’s outstanding shares at the start of the program. Additionally, repurchases on the Toronto Stock Exchange require regulatory approval under a normal course issuer bid.

Why Did This Happen?

The share repurchase program is being implemented as the company faces challenges from the broader crypto market. Galaxy Digital reported recent losses tied to weaker digital asset valuations. Despite these challenges, the company emphasized that its balance sheet remains strong and that it will continue to allocate capital toward strategic growth.

The buyback program is also seen as a way to return value to shareholders. Galaxy Digital has been authorized to purchase up to $200 million of its Class A common stock, reflecting the company's belief that its shares are undervalued.

How Did Markets Respond?

Galaxy Digital's stock price responded positively to the announcement, rising sharply after the buyback plan was revealed. This move has been interpreted as a vote of confidence by the company and may inspire similar actions by other firms in the crypto sector.

The broader crypto market also showed signs of a rally, with Bitcoin rising to $70,347 and Ethereum reaching $2,058.42. These gains reflect a growing optimism in the market despite lingering regulatory uncertainties.

What Are Analysts Watching Next?

Analysts are closely monitoring the market response to Galaxy Digital's share repurchase program. Citizens reiterated its Market Outperform rating on Galaxy Digital with a price target of $60.00. The research firm believes the company is well-positioned to participate in a broad range of industry outcomes according to its analysis.

The company's data-center business is also being watched closely. Galaxy Digital is building a massive campus in rural Texas and remains on track to deliver 133 megawatts of infrastructure load to cloud-computing provider CoreWeave in the first half of 2026.

Investors and analysts are also monitoring the broader market for signs of a sustained rally. The Fear & Greed Index currently reads at “extreme fear,” suggesting that many investors remain cautious despite recent gains.

Galaxy Digital's move is being seen as a potential catalyst for the crypto market. If successful, it may encourage other crypto-focused firms to follow suit, creating a domino effect of confidence and potentially accelerating institutional inflows into the market.

The company's CEO, Mike Novogratz, emphasized the importance of strategic growth and the potential for long-term gains. The company's balance sheet remains strong, and the repurchase program is expected to enhance shareholder value over time.

Overall, Galaxy Digital's $200 million share repurchase program is being viewed as a significant move that could have long-lasting effects on the company and the broader crypto market.