Galaxy Digital Launches $200M Buyback Program, Shares Jump 18%
Digital asset management firm Galaxy Digital recently announced a significant stock repurchase plan, intending to buy back up to $200M in Class A common shares over the next 12 months. Following the announcement, its shares surged 18% to $19.90.
The company indicated that the buyback could occur through open market purchases or private transactions. This move signals management's belief that the current share price is undervalued and demonstrates the firm's strong capital position.
Financial Performance and Outlook
While Galaxy Digital reported a net loss of $482M for the fourth quarter, its adjusted gross profit for the year stood at $426M. The firm currently holds $2.6B in cash and stablecoins, providing robust financial flexibility for future expansion and market volatility.
- Buyback size: Up to $200 million
- Timeframe: Next 12 months
- Purchase methods: Open market or private transactions
This decision has boosted investor confidence and highlights the company's strategic agility in a volatile market environment. Analysts suggest that Galaxy's buyback program could support its long-term value and lay the foundation for future growth.