TLDR

  • Galaxy Digital has greenlit a $200 million share repurchase initiative to acquire its Class A common stock.
  • The repurchase program will run for 12 months and may be executed via open market purchases or private transactions.
  • Galaxy’s buyback scheme is adaptable and does not bind the company to repurchasing any shares.
  • The program requires approval for purchases made on the Toronto Stock Exchange.
  • Mike Novogratz, Galaxy’s CEO, voiced confidence in the company’s standing as it approaches 2026.

Galaxy Digital Inc. (Nasdaq: GLXY) has approved a $200 million share repurchase program. This initiative will enable the company to buy back its Class A common stock over the next year. The firm intends to utilize the repurchase program to return capital to shareholders when its stock is deemed undervalued.

Details of the Share Repurchase Program

Galaxy revealed that it may repurchase shares through open market transactions or privately negotiated deals. The repurchases will adhere to the guidelines of Rule 10b5-1 trading plans and comply with relevant securities regulations and exchange rules. The buyback program remains flexible, with no requirement for Galaxy to repurchase a specific number of shares.

The program has a 12-month duration and will need approval if repurchases occur on the Toronto Stock Exchange. If shares are repurchased on Nasdaq, such purchases will be capped at 5% of Galaxy’s outstanding shares at the program’s start. The company did not specify when repurchases would begin or how much of the $200 million would be used.

Galaxy’s Financial Position and Strategy

Mike Novogratz, Galaxy’s founder and CEO, expressed confidence in the company’s position heading into 2026. “We are entering 2026 from a position of strength,” Novogratz stated. He added that the company’s balance sheet and ongoing investments offer flexibility for returning capital when appropriate.

This move comes after a challenging financial performance for Galaxy, which reported a net loss of $482 million in Q4 2025. For the full year, the company recorded a loss of $241 million. These losses were linked to a drop in digital asset prices and approximately $160 million in one-time expenses.

Despite these financial setbacks, Galaxy’s stock price has seen a recent uptick. Shares have increased by roughly 17% in the past 24 hours. However, over the past month, the stock remains down by about 25%, reflecting a broader trend in crypto-related equities.

Industry Impact and Market Trends

The decline in Galaxy’s share price aligns with a larger correction in the cryptocurrency market. Bitcoin prices, specifically, have fallen from highs exceeding $97,000 in January to a low of around $60,300. Other crypto-sector companies have also faced steep declines, including Circle Internet Group, both of which reported significant losses over the past month.

Additionally, companies with large Bitcoin holdings, such as MicroStrategy, have been severely impacted by falling prices. MicroStrategy, the largest public Bitcoin holder, has seen its stock drop by nearly 68% over the past six months. Bitcoin mining firms, including Marathon Digital Holdings and IREN Limited, have also experienced declines in their stock values.