Galaxy Digital Inc. (GLXY) announced a new share repurchase program that authorizes the company to buy back up to $200 million of its Class A common stock over a 12‑month period, with purchases to be made through open‑market transactions, private negotiations or other compliant methods.
The move signals management’s confidence that the current share price undervalues the business. CEO Mike Novogratz said the company’s strong balance sheet and continued investment in its dual‑engine strategy—digital assets and data‑center infrastructure—provide the flexibility to return capital to shareholders when the stock is perceived as undervalued.
Financially, the program comes after a challenging 2025. Galaxy Digital posted a Q4 net loss of $482 million and a full‑year loss of $241 million, largely driven by a $160 million one‑time reorganization charge and the decline in digital‑asset prices. Despite the losses, the company ended 2025 with $2.6 billion in cash and stablecoins and $3.0 billion in equity, and it recorded a record $505 million in adjusted gross profit from digital‑asset operations, a 67 % year‑over‑year increase.
Segment performance highlights the company’s strategic focus. Digital‑asset revenue grew sharply, while the data‑center segment expanded its Helios campus in Texas, securing ERCOT approval for an 830‑megawatt expansion that brings total approved capacity to over 1.6 GW. The Treasury & Corporate segment continues to support the company’s capital‑allocation strategy, including the new buyback program.
The announcement was well received by investors, with the stock rising 15 % in pre‑market trading, 14 % during the day, and nearly 16 % overall. The market reaction was driven by the perception that the buyback reflects strong liquidity, a solid balance sheet, and management’s belief that the shares are undervalued, all of which reinforce confidence in the company’s long‑term prospects.
The share repurchase program is part of Galaxy Digital’s broader capital‑allocation strategy. By returning capital to shareholders while maintaining a robust balance sheet, the company aims to support share price stability and provide a buffer for future investments in its dual‑engine strategy. The program’s 12‑month horizon allows flexibility to adjust the pace of repurchases in response to market conditions and the company’s evolving financial position.
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