Galaxy Digital (GLXY) shares surged nearly 18% Friday, touching highs of $20.04, after the board approved a $200 million share repurchase program. The rally marks a sharp reversal in sentiment just 72 hours after the firm reported a staggering $482 million net loss for the fourth quarter of 2025.
Buying the Dip on Themselves
The approved plan authorizes Galaxy to repurchase up to $200 million of its Class A common stock over the next 12 months. Executions can occur via open market buys, private transactions, or block trades. The timing suggests a deliberate effort to set a floor under the stock price following a brutal earnings print earlier in the week.
Founder and CEO Mike Novogratz framed the capital allocation as a signal of undervaluation rather than a defensive maneuver.
"We are entering 2026 from a position of strength, with a strong balance sheet and continued investment in Galaxy's growth. That foundation gives us the flexibility to return capital to shareholders when we believe our stock doesn't reflect the value of the business."
The Earnings Disconnect
The market's enthusiastic response, driving the stock from a previous close of $16.84 to over $20, ignores the immediate financial reality presented on Tuesday. Galaxy's Q4 report revealed a $482 million net loss, driven by realized losses on digital assets and operational headwinds. Full-year 2025 losses totaled $241 million.
Investors appear to be pricing in the buyback as a hard catalyst for liquidity, effectively looking past the backward-looking earnings data. The divergence between the 18% intraday pump and the company’s recent operational cash burn highlights a market willing to bid on narrative over net income.
The repurchase program can be suspended or discontinued at any time, a standard clause that nonetheless leaves the board with an 'escape hatch' if market conditions deteriorate further.
