Galaxy Digital Shares Dive Following $482 Million Q4 Loss

Galaxy Digital Inc. reported a $482 million loss in the fourth quarter of 2025, surpassing analysts' expectations. The decline in digital asset prices, particularly Bitcoin, was a major contributing factor. The firm also noted a 22% drop in the value of its net digital assets and investments, which fell to $1.68 billion from $2.14 billion in the previous quarter according to Seeking Alpha.

The firm's Q4 revenue dropped to $10.37 billion, a sharp decline from $15.81 billion in the same period a year ago. The adjusted loss-per-share figure came to $1.08, above the FactSet forecast of 91 cents a share. Galaxy's Digital Assets unit saw an 84% drop in adjusted gross profit, while the Treasury & Corporate segment recorded an adjusted gross profit of -$454 million as reported.

Galaxy Digital's shares dropped 9.2% in premarket trading after the earnings report. At the time of publication, the stock was trading at $22.83, down 13% from earlier in the day. The firm's stock has lost 39% of its value since its October peak.

How Did the Company's Financials Change?

The company's total adjusted EBITDA for Q4 came in at -$518 million, down from $630 million in the previous quarter. This reflects a significant deterioration in the company's earnings performance. Galaxy's digital-trading volumes dropped 40% from the previous quarter, with the firm facilitating a $9 billion Bitcoin trade in Q3 2025 as Decrypt reported.

The company's cash and stablecoin reserves increased by 36% to $2.6 billion, thanks to two equity raises and a senior note offering. Despite this, Galaxy's net loss for the year amounted to $241 million, with a significant portion attributed to lower digital asset prices and one-time costs according to Marketscreener.

What Is the Market Reaction?

Galaxy Digital's shares hit their lowest price since July 2025 following the earnings report. The stock was trading at $22.13, reflecting a 16% drop on the day. The market's reaction appears to be driven by concerns over the broader crypto market's performance and Galaxy's exposure to digital assets.

Bitcoin and Ethereum prices fell 23% and 28%, respectively, in the fourth quarter, contributing to the decline in Galaxy's investment portfolio value. The company's assets on its platform dropped to $12 billion, with $2 billion in net inflows in its asset management business.

What Do Analysts Say About the Outlook?

Analysts at investment bank Compass Point noted that Galaxy's Helios data center remains on track for completion in Q1 2026, with the first data hall expected to be delivered in the first half of the year. The firm has received approval for an additional 830 MW of power capacity, bringing the total to more than 1.6 gigawatts.

While the company's digital assets business struggled, its data center segment showed some resilience. Galaxy's Data Centers adjusted gross profit rose to $4.6 million from $2.7 million in the previous quarter. The company's balance sheet remains strong, with $2.6 billion in cash and stablecoins.

Despite the challenges, some analysts remain optimistic about Galaxy's long-term prospects. Benchmark analysts suggested that the company's Helios expansion provides embedded optionality and differentiates it from other public companies with AI data center exposure.