Galaxy Digital Inc. (Nasdaq: GLXY) has announced a strategic move to repurchase up to $200 million of its Class A common stock over the coming year. This decision comes at a time when Galaxy's shares, along with other crypto-related stocks, have experienced a downturn in line with Bitcoin's price decline.
The buyback, as detailed by the company, allows for acquisition of shares either through open market operations or private negotiations, in compliance with Rule 10b5-1 trading plans and relevant securities regulations. However, Galaxy is not obligated to repurchase the entire amount and retains the flexibility to pause or stop the program if necessary.
Spanning a 12-month period, the buyback scheme, if executed on the Toronto Stock Exchange, requires regulatory consent under a standard issuer bid, whereas purchases on Nasdaq will be limited to 5% of Galaxy’s outstanding shares at the program’s inception.
Galaxy, which is publicly listed on both the Nasdaq and the Toronto Stock Exchange, is engaged in various digital asset services, including trading, asset management, staking, custody, and data center operations. The company has not specified how much of the $200 million allocation it plans to utilize nor the timeline for commencing these buybacks.
Founder and CEO Mike Novogratz expressed confidence in the company’s strong financial position, asserting that Galaxy’s robust balance sheet and investments provide the agility needed to repurchase shares when they believe the stock is undervalued.
This announcement follows closely after Galaxy reported a significant net loss of $482 million for the fourth quarter of 2025 and a $241 million loss for the full year, attributing the losses to declining digital asset values and approximately $160 million in one-time expenditures.
At the time of reporting, Galaxy's stock had risen by about 17% over the past 24 hours, yet remained approximately 25% lower for the month, as per Yahoo Finance data.
The broader crypto market has seen a decline, with Bitcoin's price dropping from over $97,000 in January to approximately $60,300 recently. This downturn has impacted other crypto stocks, such as Coinbase Global (COIN) and Circle Internet Group (CRCL), which have seen declines of about 36% and 34% respectively over the past month.
Similarly, MicroStrategy (MSTR), which holds the largest public Bitcoin reserve with 713,502 BTC, has experienced a near 68% drop over six months. The company recently reported a staggering $12.4 billion net loss for Q4 2025. Bitcoin mining firms like MARA Holdings (MARA) and IREN Limited (IREN) have also been affected, with MARA down 27% and IREN down 8% over the past month.
This initiative by Galaxy reflects a strategic maneuver to potentially capitalize on current market conditions and enhance shareholder value amidst a challenging period for crypto-related equities.