GLXY Earnings Trigger Sharp Drop as Crypto Losses Hit Balance Sheet

Galaxy Digital (Nasdaq: GLXY) stock news has investors on edge after a sharp pre-market drop that has erased nearly 12% of its value. This move stands out against a broader market backdrop that’s seen the Nasdaq and S&P 500 futures ticking higher by 0.8% and 0.62%, respectively. The key question for traders right now is: what’s driving this unusual price action in a mid-cap crypto-related play like GLXY?

Why is GLXY stock dropping today?

The most direct answer is earnings. Galaxy Digital released its Q4 2025 and full-year results, revealing a $482 million net loss for the quarter and a $241 million loss for the year. That’s far worse than the market expected, and it’s tied directly to the devaluation of its crypto holdings in the Treasury & Corporate segment.

This wasn’t a vague earnings miss — it was a structural blow to the company’s balance sheet. The losses were largely driven by unrealized losses on crypto assets, a fact clearly stated in the earnings report. That’s why the stock dropped more than 11% pre-market. Even though GLXY has had volatile swings before, this move is notable because it came after a clearly defined earnings trigger.

Still, earnings alone don’t always explain sharp moves. We checked the volume story. Today’s pre-market volume is up to 9.99 million shares, which is above the 20-day average. That suggests some real money is moving here. The price action is directional too — it’s not just random noise. That said, the relative volume isn’t extreme, so it’s not a full-blown institutional move.

Put differently, this looks like a real earnings-driven drop with enough volume to suggest it’s not a short-term blip. The market is reacting to a deteriorating fundamental story, and it’s unlikely to reverse unless something meaningful changes in the near term.

What to watch after a potential breakdown?

GLXY isn’t just dropping — it’s breaking down. The stock is now trading near the lower end of its 60-day range and well below its 20-day moving average (currently at $28.66). From a technical standpoint, this is a key moment for the stock.

The key levels to watch now are below and around the $19.00 level, which is both the nearest support and resistance. This is where the price could stabilize or break further. If the stock fails to hold $19.00, it could trigger a deeper sell-off. Conversely, if it manages to bounce here, it might signal the end of the breakdown.

In practice, the broader market could play a role here. The Nasdaq is up and crypto prices are mixed, so there’s some divergence in the broader sector. But for GLXY, the damage is done for now. The company’s earnings story is more about asset quality than revenue, and that kind of risk is tough to shake quickly.

Still, the chart shows a potential pullback zone between $19.00 and $26.65 — that’s the space between the 50-day moving average and the 20-day moving average. If the stock finds buyers in that range, it could signal the start of a mean-reversion scenario.

What are the key support and resistance levels for GLXY?

The immediate support and resistance is clumping around $19.00. That’s the key level to watch for confirmation of the breakdown or a possible bounce. But it’s not the only level that matters. The 20-day low is at $19.72, and that’s a psychological floor. If the stock breaks below $19.00, the next test will be whether it can hold $19.72.

On the upside, if the stock manages to rally back into the $19.00–$20.00 range, it could find a temporary ceiling there before testing the 50-day average at $26.65. That’s a much more neutral level and could serve as a pivot point.

The bottom line is that GLXY is in a critical period. The breakdown is clear, but whether it leads to a full-scale reversal or a consolidation phase depends on how the stock handles these key levels. For now, the short-term bias is to the downside — and that’s a risk every GLXY investor should be watching closely.