Galaxy Digital, a leading firm in digital assets and AI infrastructure, revealed substantial financial setbacks in 2025. The company reported a net loss of $241 million for the year, with a staggering $482 million deficit in the fourth quarter alone. This downturn was attributed primarily to declining digital asset prices and approximately $160 million in one-time expenses.
In a detailed financial statement released on Tuesday, Galaxy Digital explained that the significant losses in Q4 2025 were largely due to the depreciation of cryptocurrency values during the period. Bitcoin (BTC), a key market indicator, saw its price fall by roughly 20% in the fourth quarter.
Michael Novogratz, Galaxy Digital's CEO, addressed investors during a shareholder update call on Tuesday. He remarked on the ongoing bear market affecting major cryptocurrencies like Bitcoin, Ethereum, and Solana. Novogratz noted, "We’re likely at the lower end of the Bitcoin price range. Anyone who has been involved in crypto for over five years knows that enduring tough times is part of this industry's nature. Often, when conditions seem dire, it's a moment to focus, prepare, and consider investing."
Despite these setbacks, Galaxy Digital reported an adjusted gross profit of $426 million for the full year of 2025. The company concluded the year with $2.6 billion in cash and stablecoins. Additionally, it managed $12 billion in total platform assets and received $2 billion in net inflows for its asset management division.
In a strategic move announced in August, Galaxy Digital is advancing its plans to establish an artificial intelligence data center in Texas. They secured approval from the Electric Reliability Council of Texas in January for an additional 830 megawatts of power capacity, increasing the facility's total approved capacity to over 1.6 gigawatts.
On the Nasdaq, Galaxy's shares (GLXY) experienced a 15% drop, trading at $22.48 as of Tuesday.
Meanwhile, other companies in the cryptocurrency sector reported financial gains in the same quarter. SoFi Technologies, a fintech enterprise enabling cryptocurrency transactions, disclosed a fourth-quarter revenue of $1 billion. Securitize Holdings, a tokenization firm, saw its revenues surge by over 840% through September 2025, amid plans for an initial public offering.
Galaxy Digital's financial challenges underscore the volatility inherent in the digital asset market, yet their ongoing infrastructure investments signal a commitment to long-term growth and innovation.