Shares of Galaxy Digital (GLXY) jumped 18% to $19.90 on Friday after the company approved a stock repurchase program of up to $200 million, giving it the authority to repurchase its Class A common stock over the next 12 months.
Repurchases may be executed through the open market, privately negotiated transactions or other methods, including Rule 10b5-1 trading plans, the company said. Galaxy added that it reserves the right to suspend or discontinue the program at any time, depending on market conditions and other factors.
The announcement demonstrates management’s confidence that Galaxy shares are undervalued and that the company has excess capital to deploy. Stock repurchase programs often support stock prices by reducing the number of shares outstanding, which can increase earnings per 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 actions do not reflect the value of the company.”
The sharp rise reflects investors’ approval of this message.
Galaxy reported fourth-quarter results earlier this week that initially weighed on the stock. The company reported a net loss of $482 million for the quarter, which initially sent shares lower. Despite the quarterly loss, Galaxy said it generated an adjusted gross profit of $426 million 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 during the day’s trading, along with Bitcoin go back to $70,000 and Ethereum breaking $2,000 in the last 24 hours. Coinbase (COIN) rose more than 10% to $163. In more traditional markets, the Dow Jones Industrial Average surpassed 50,000 for the first time.
