Galaxy Digital shares climbed sharply after the company announced a major share repurchase plan, signaling confidence in its financial position despite recent earnings volatility.
Galaxy Digital Approves $200 Million Share Buyback
Galaxy Digital authorized a share repurchase program of up to $200 million, allowing the company to buy back its Class A common stock over the next 12 months. Following the announcement, shares jumped about 18%, closing near $19.90, as investors reacted positively to the move.
The company stated that repurchases may be carried out through open-market purchases, privately negotiated transactions or structured trading plans. Management also retained flexibility to pause or discontinue the program depending on market conditions and capital needs.
Buyback Signals Balance Sheet Strength
Share buybacks are commonly viewed as a sign that management believes the stock is undervalued and that the company has surplus capital. In Galaxy Digital’s case, the decision comes after a turbulent earnings period, reinforcing confidence in the firm’s long-term fundamentals and liquidity.
While Galaxy reported a net loss of $482 million in the fourth quarter, the company emphasized stronger underlying performance for the full year.
Liquidity and Capital Position Remain Solid
For the year, Galaxy generated $426 million in adjusted gross profit and ended the period with approximately $2.6 billion in cash and stablecoins. This substantial liquidity provides flexibility to both invest in growth and return capital to shareholders.
The buyback announcement helped restore investor confidence, positioning Galaxy Digital as one of the stronger balance sheets among crypto-focused financial firms.
Disclaimer
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