Shares of Galaxy Digital ( GLXY ) rose 18% to $19.90 on Friday after the company approved a share buyback program of up to $200 million, giving it the authority to buy back its Class A stock over the next 12 months.
The buybacks can be done through the open market, privately negotiated transactions or other methods, including trading plans under Rule 10b5-1, the company said. Galaxy added that it retains the right to suspend or discontinue the program at any time, depending on market conditions and other factors.
The announcement signaled confidence from management that Galaxy’s shares are undervalued and that the firm has excess capital to deploy. Share buyback programs often support share prices by reducing the number of shares outstanding, which can increase earnings per share. share and signal balance sheet strength. In volatile markets, buybacks can also reassure investors that management believes the company’s fundamentals remain intact.
“We enter 2026 from a position of strength with a strong balance sheet and continued investment in Galaxy’s growth,” said Mike Novogratz, founder and CEO of Galaxy. “This basis gives us the flexibility to return capital to shareholders when we believe our stock does not reflect the value of the company.”
The sharp move higher reflects investors’ approval of this message.
Galaxy earlier reported this week’s fourth-quarter earnings, which initially weighed on the stock. The company posted a net loss of $482 million for the quarter, sending shares down initially. Despite the quarterly loss, Galaxy said it generated $426 million in adjusted gross profit for the full year and ended the year with $2.6 billion in cash and stablecoins, underscoring its liquidity position.
Other crypto stocks and major cryptocurrencies were also green without today’s trading in bitcoin climb back to $70,000 and ethereum broke $2,000 in the last 24 hours. Coinbase (COIN) was up over 10% to $163. In more traditional markets, the Dow Jones Industrial Average broke 50,000 for the first time.
