TLDR
- Galaxy Digital reported a $482 million Q4 2025 loss and $241 million annual loss due to crypto price drops and $160 million in one-time expenses.
- Bitcoin’s 20% fourth-quarter decline hammered the company’s digital asset portfolio and balance sheet.
- Shares dropped 15-18% Tuesday, falling from $26.44 to as low as $24.10 on heavy trading volume.
- The company holds $2.6 billion in cash and stablecoins with $426 million in adjusted gross profit for 2025.
- Analysts keep a “Buy” consensus rating with a $46.42 average price target despite the quarterly losses.
Galaxy Digital’s latest earnings report wasn’t pretty. The crypto-focused firm posted a $482 million loss in Q4 2025.
Annual losses hit $241 million. Falling digital asset prices combined with $160 million in one-time costs created the damage.
Bitcoin’s rough quarter played a major role. The cryptocurrency dropped approximately 20% during Q4 2025.
That decline directly impacted Galaxy’s holdings. The company’s balance sheet absorbed the full force of the crypto market downturn.
CEO Michael Novogratz addressed the situation bluntly. “Bitcoin, Ethereum, Solana, you name ’em — have been in a bear market,” he told shareholders Tuesday.
But Novogratz sees a familiar pattern. “We’ve been here before,” he said, suggesting the current price levels might represent a buying opportunity.
Stock Takes a Hit
The market responded swiftly to the earnings news. Galaxy shares gapped down before Tuesday’s opening bell.
Monday’s close was $26.44. Tuesday opened at $25.23 and touched a low of $24.10.
Trading volume surged to nearly 2 million shares. The stock finished down roughly 15% for the session.
Galaxy’s market cap now stands around $8.41 billion. The PE ratio sits at 17.93.
Both moving averages exceed current prices. The 50-day average is $26.99, while the 200-day hits $29.50.
Financial Position Remains Stable
Galaxy isn’t in crisis mode. The company ended 2025 with $2.6 billion in cash and stablecoins.
Total platform assets reached $12 billion. Asset management pulled in $2 billion of net inflows during the year.
Adjusted gross profit totaled $426 million for 2025. The debt-to-equity ratio stands at a manageable 0.36.
Current and quick ratios both register 1.35. That indicates decent short-term liquidity.
The company beat Q4 earnings expectations. Analysts projected a $1.24 per share loss. Galaxy reported $1.08 per share.
Wall Street maintains faith in the stock. The consensus rating is “Buy” with a $46.42 average price target.
BTIG holds a $50 price target. Citizens JMP goes even higher at $60.
Morgan Stanley initiated coverage with an “overweight” rating and $42 target. Rosenblatt and Canaccord Genuity also rate it “Buy.”
Goldman Sachs takes a neutral stance with a $27 price target. Overall, 13 analysts rate it “Buy” or “Strong Buy,” while just two assign “Hold.”
Institutional money is flowing in. Vanguard increased its position by 27.5% in Q4, now holding over 20.6 million shares worth $462 million.
Director Douglas R. Deason bought 10,000 shares in November at $29.59 each. Insider buying typically signals confidence.
Galaxy received approval for 830 additional megawatts of power capacity for its Texas AI data center in January. Total approved capacity now exceeds 1.6 gigawatts.
The company completed its Delaware reorganization and Nasdaq listing. That removes some regulatory uncertainty.
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