Galaxy Digital Inc. (Nasdaq: GLXY) has authorized a $200 million share repurchase program for its Class A common stock, a move announced as the company and the broader crypto market grapple with significant losses. The program, which will span 12 months, allows the firm to buy back shares on the open market or through privately negotiated transactions, including under Rule 10b5-1 trading plans, and is subject to compliance with securities laws and exchange rules.
The announcement follows Galaxy's disclosure of a net loss of $482 million for Q4 2025 and a full-year loss of $241 million, which the company attributed to declining digital asset prices and approximately $160 million in one-time costs. Despite these financial results, CEO Mike Novogratz expressed confidence, stating, "We are entering 2026 from a position of strength," and framed the buyback as a flexible capital allocation tool to return value when the stock is considered undervalued.
The program is flexible and does not obligate Galaxy to repurchase any shares; it can be paused or terminated at any time. If repurchases are made on the Toronto Stock Exchange, they require approval under a normal course issuer bid. Purchases on Nasdaq would be limited to 5% of Galaxy's outstanding shares at the program's start. The company did not specify when buybacks would begin or how much of the $200 million authorization it expects to use.
The broader context is a severe selloff in crypto-related equities. Bitcoin's price has plummeted from highs above $97,000 in January to around $60,300, dragging down major industry players. Over the past month, shares of Coinbase Global fell about 36%, Circle Internet Group declined about 34%, and MicroStrategy (referred to as "Strategy" in the report), the largest public Bitcoin holder, slid about 20% in a month and nearly 68% over six months after reporting a massive Q4 loss. Mining stocks like Marathon Digital Holdings (MARA) and IREN Limited have also seen steep declines.
In the 24 hours following the buyback announcement, Galaxy's stock price rose approximately 17%, though it remains down roughly 25% for the month, reflecting the challenging environment for crypto-linked companies.
