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The buyback initiative comes after a week of fluctuating earnings and indicates trust in the company’s financial position.
Key points:
- Galaxy Digital’s shares surged 18% to $19.90 following the company’s approval of a share repurchase initiative of up to $200 million for the upcoming year.
- The repurchases, which could occur in the open market or through private agreements, reflect management’s belief that the stock is undervalued and that the company has surplus capital.
- Although the firm reported a net loss of $482 million for the fourth quarter, Galaxy emphasized $426 million in adjusted gross profit for the year and $2.6 billion in cash and stablecoins, highlighting its liquidity and financial stability.
Shares of Galaxy Digital (GLXY) increased 18% to $19.90 on Friday after the company’s approval of a share repurchase program allowing up to $200 million in buybacks over the next 12 months.
The buybacks may be carried out via the open market, privately negotiated transactions, or other methods, including trading plans under Rule 10b5-1, according to the company. Galaxy also noted that it reserves the right to halt or terminate the program at any time based on market conditions and other considerations.
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The announcement demonstrated management’s confidence that Galaxy’s shares are undervalued and that the firm possesses excess capital to utilize. Share buyback initiatives frequently support stock values by reducing the number of outstanding shares, which can enhance earnings per share and indicate financial robustness. In fluctuating markets, buybacks can also assure investors that management believes the company’s fundamentals are sound.
“We are entering 2026 from a position of strength, with a strong balance sheet and continued investment in Galaxy’s growth,” stated Mike Novogratz, founder and CEO of Galaxy. “That foundation provides us the flexibility to return capital to shareholders when we feel our stock does not accurately reflect the business’s value.”
The significant increase reflects investor endorsement of that message.
Galaxy disclosed fourth-quarter earnings earlier this week that initially pressured the stock. The company reported a net loss of $482 million for the quarter, which led to an initial decline in shares. Nevertheless, Galaxy noted it achieved $426 million in adjusted gross profit for the entire year and concluded the year with $2.6 billion in cash and stablecoins, emphasizing its liquidity status.
Other cryptocurrency stocks and major digital currencies also performed well during the day’s trading, with bitcoin rebounding to $70,000 and ethereum surpassing $2,000 in the last 24 hours. Coinbase (COIN) saw an increase of more than 10% to $163. In more traditional markets, the Dow Jones Industrial Average surpassed 50,000 for the first time.
