Galaxy Digital Launches $200M Share Buyback Amid Crypto Market Decline

Galaxy Digital Inc. has authorized a $200 million share repurchase program, aiming to bolster shareholder value amid a challenging market for crypto-linked stocks. The program allows the firm to buy back Class A common stock on the open market or through privately negotiated transactions over the next 12 months. The announcement comes as Galaxy's shares have fallen in recent weeks due to broader declines in Bitcoin and other digital assets.

The company's stock dropped 6% to $24.85 in premarket trading after Galaxy reported a fourth-quarter loss of $481.7 million. The loss marked a sharp reversal from a profit of $117.5 million in the same period a year ago, primarily driven by a decline in the value of its digital assets as crypto prices fell.

Galaxy's management emphasized that the buyback reflects confidence in the company's long-term growth and its strong balance sheet. CEO Mike Novogratz stated the program underscores the firm's commitment to returning value to shareholders when stock prices do not reflect the business's intrinsic worth.

Why Did This Happen?

Galaxy's repurchase authorization aligns with broader efforts to stabilize investor sentiment during a period of market volatility. The company's digital asset trading volumes fell 40% from the previous quarter due to slower client activity, while the value of its net digital assets dropped 22%.

The buyback is also a strategic response to the recent selloff in crypto-linked stocks, which have been hit by declining prices for Bitcoin and ether. Galaxy's shares, which traded as low as $22.61 recently, have seen significant pressure amid fears of a broader crypto winter.

How Did Markets React?

Investor sentiment improved slightly after the buyback announcement, though shares remain underperforming compared to earlier in the year. Galaxy's stock opened at $24.85 after the earnings report but had already dropped 14% on the day.

The move has been viewed by some as a stabilizing factor, with analysts noting that Galaxy has navigated multiple bull and bear market cycles with a demonstrated ability to adapt. However, the company's full-year 2025 GAAP net loss of $241 million has raised questions about its short-term profitability.

What Are Analysts Watching Next?

Citizens reiterated a Market Outperform rating for Galaxy with a $60 price target, highlighting its long-term potential in the expanding digital asset and tokenization market. The firm believes Galaxy's experience and expertise give it a competitive edge over new entrants and traditional incumbents.

Analysts are also monitoring how the buyback impacts Galaxy's data center business, which is seeing progress in Texas with a large-scale infrastructure project. The company received approval for an additional 830 megawatts of power capacity, bringing its total to 1.6 gigawatts at the site.

Investors are weighing whether Galaxy's strategic focus on digital assets and infrastructure can drive long-term value, despite near-term financial setbacks. The buyback, if executed in line with expectations, could help stabilize the stock as the company seeks to balance its exposure to crypto volatility.

The market will likely continue to assess how broader crypto trends—such as the recent Bitcoin selloff and regulatory developments— impact Galaxy's business model. The firm's ability to return to profitability while expanding its infrastructure and tokenization initiatives will remain key watchpoints for investors.