Galaxy Digital Holdings Ltd. (GLXY) reported a substantial net loss of $482 million for the fourth quarter of 2025, triggering a 6% decline in its stock during pre-market trading. The company attributed the significant loss primarily to declining valuations of major digital assets like Bitcoin and Ethereum during the quarter, alongside approximately $160 million in one-time expenses related to operational restructuring and technology investments.
Financial results for the full year 2025 showed a net loss of $241 million, with an adjusted loss per share of $0.61. Despite the quarterly setback, underlying financial metrics revealed resilience. Galaxy Digital reported an annual adjusted gross profit of $426 million, a 10% year-over-year increase, and maintained a strong liquidity position with $2.6 billion in cash and stablecoin assets. Total equity stood at $3 billion as of December 31, 2025.
The company's asset management platform showed robust growth, with total assets reaching $12 billion by year-end. Galaxy Digital achieved $2 billion in net inflows and 34% organic growth in asset management during 2025, signaling continued institutional confidence. Strategically, the firm is diversifying revenue through infrastructure investments, including signing long-term agreements for 800 megawatts of data center capacity with artificial intelligence and cloud computing company CoreWeave.
Analysts noted that Galaxy Digital's experience reflects broader trends in the cryptocurrency financial services sector, where institutional firms face amplified volatility due to asset price fluctuations and evolving regulations. The sector's institutional adoption has been growing approximately 34% annually since 2022.
