Galaxy Digital’s board approved a buyback program authorizing the investment of up to $200 million of its Class A common stock over a 12-month period. Management presented the move as a capital allocation decision intended to return value to shareholders as the company navigates a challenging market environment.
Galaxy announced a share repurchase program designed to give the company flexibility in its use of capital, amid weak financial results but a strong balance sheet. The plan authorizes the repurchase of up to $200 million of Class A common stock and will run for 12 months from the date of board approval, dated February 6, 2026.
As detailed by the company, the repurchases may be conducted through open market purchases, privately traded transactions, and structured trading plans under Rule 10b5-1. Management emphasized that the program is entirely discretionary and does not impose an obligation to acquire a specific volume of shares, allowing the company to adjust the pace and magnitude of the purchases based on market conditions.
The program is subject to specific regulatory limits. On Nasdaq, the repurchases cannot exceed 5% of the outstanding share capital at the start of the plan. In the case of the TSX, any transaction will require prior approval under a standard issuer bid process, adding an extra layer of regulatory oversight to the capital deployment.
Why is Galaxy deciding to repurchase shares?
The announcement came after a challenging financial year for Galaxy. The company reported a net loss of $482 million in the fourth quarter of 2025 and an annual loss of $241 million. Management attributed these results to both the overall decline in the crypto market and approximately $160 million in non-recurring operating costs.
Even so, Mike Novogratz maintained that Galaxy is entering 2026 “from a position of strength,” noting that the balance sheet provides room to return capital when the share price no longer reflects the underlying value of the business.
Shares rose at the open following the announcement, with reported gains in the tens of percentage points, suggesting that investors interpreted the repurchase as a sign of confidence from management, even in the face of recent losses.
Ultimately, the program’s appeal will lie not only in the authorized amount but also in how it aligns with a recovery in earnings. Galaxy’s ability to reverse losses, control costs, and capitalize on opportunities in a still-volatile market environment will be key in determining whether the momentum generated by the share buyback can be sustained beyond the short term.
