Galaxy Digital shares surged 18% on Friday, jumping to $19.90 after the firm’s board approved a share repurchase program of up to $200 million. The authorization allows Galaxy to buy back Class A common stock over the next 12 months via the open market, privately negotiated transactions, or other methods — including trading plans under SEC Rule 10b5-1 — and the company said it can pause or stop the program depending on market conditions.
Management framed the move as a sign of confidence that the stock is undervalued and that the firm has excess capital to return to shareholders. Share buybacks typically support share prices by reducing outstanding shares and can lift earnings-per-share metrics, while also signaling balance-sheet strength — a comforting message in volatile markets.
“We are entering 2026 from a position of strength, with a strong balance sheet and continued investment in Galaxy’s growth,” said founder and CEO Mike Novogratz. “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 board’s action and Novogratz’s comments appear to have resonated with investors, prompting the sharp intraday gain.
The buyback announcement followed mixed earnings news earlier in the week. Galaxy reported a fourth-quarter net loss of $482 million, which initially pressured the stock, but the company highlighted full-year results that underscore liquidity: $426 million in adjusted gross profit for 2025 and $2.6 billion in cash and stablecoins at year-end.
The positive sentiment extended across crypto markets on the day. Bitcoin climbed back to roughly $70,412 and Ethereum traded above $2,000 at about $2,063.47 over the last 24 hours. Major crypto-related equities also rallied: Coinbase rose more than 10% to about $163. In broader markets, the Dow Jones Industrial Average passed the 50,000 mark for the first time, adding to the upbeat risk-on backdrop.
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