Galaxy Digital Launches $200M Buyback later than Crypto Stock Selloff
What Did Galaxy Announce?
Galaxy Digital Inc. has approved a share repurchase program of up to $200 million, giving the firm authority to purchase back its Class A common stock over the next 12 months. The company said repurchases may occur in the open market or through privately negotiated transactions, including under Rule 10b5-1 trading plans, and will comply with applicable securities laws and platform rules.
The authorization does not require Galaxy to repurchase any shares and can be paused or ended at any time. If purchasebacks take place on the Toronto Stock platform, they remain subject to approval under a normal course issuer bid. Purchases on Nasdaq would be limited to 5% of outstanding shares at the begin of the program, according to the company.
Galaxy did not say when repurchases might begin or how much of the $200 million authorization it expects to use. The firm is listed on both Nasdaq and the Toronto Stock platform and runs businesses across , asset management, staking, custody, and data center infrastructure.
Investor Takeaway
Why Announce a purchaseback later than a Loss?
The timing of the announcement comes shortly later than Galaxy disclosed a net loss of $482 million for the fourth quarter of 2025 and a $241 million loss for the full year, citing lower digital asset prices and roughly $160 million in one-time costs. The purchaseback plan arrived three days later than those results were released.
Founder and chief executive Mike Novogratz framed the move as a capital allocation decision rather than a response to short-term earnings. “We are entering 2026 from a position of strength,” he said, adding that the company’s balance sheet and ongoing investments allow management to return capital when it believes the trades below intrinsic value.
Such messaging is common later than drawdowns, but it places emphasis on liquidity and optionality rather than a promise of near-term recovery. Without guidance on timing or pace, the purchaseback functions as a tool management can deploy selectively rather than a fixed support program.
How Has the Market Reacted?
Galaxy shares rose about 17% over 24 hours following the announcement, though the stock remained down roughly 25% for the month, based on market data. The move suggests investors welcomed the signal of potential capital return, even as longer-term performance remains under pressure.
That backdrop reflects a wider pullback across crypto-linked equities. BTC has dropped from January highs above $97,000 to around $60,300, weighing on companies tied to trading volumes, asset values, and mining economics.
Over the past month, shares of Coinbase Global fell about 36%, while declined about 34% and roughly 65% over six months. Strategy, the largest public , slid about 20% in the past month and nahead 68% over six months later than reporting a $12.4 billion net loss for the fourth quarter of 2025.
Mining stocks have also lagged. MARA Holdings fell about 27% over the past month and around 52% over six months, while IREN Limited declined about 8% on the month. The broad tradeoff has tightened scrutiny on balance sheets and capital plans across the sector.
Investor Takeaway
What Does the purchaseback Mean in Practice?
In practical terms, the authorization gives Galaxy discretion rather than a timetable. purchasebacks under Rule 10b5-1 plans can smooth execution, while open-market purchases depend on price levels, liquidity, and regulatory limits. The absence of a stated begin date leaves room for management to wait for conditions it finds attractive.
For investors, the key questions are whether Galaxy generates sufficient free in a volatile market and whether capital returns compete with funding needs across its businesses, including data centers and staking services. The company has not linked the authorization to changes in leverage or operating plans.
