#What Caused Galaxy Digital’s Stock Decline?
Galaxy Digital's stock (GLXY) witnessed a notable decline of 13% on Tuesday morning. This drop follows the company's announcement of a significant net loss of $482 million for the fourth quarter of 2025. The primary factor behind this loss was a substantial 24% decrease in the total cryptocurrency market capitalization during the same period.
#How Did Galaxy Digital Perform Over the Year?
Looking at the entire year, Galaxy Digital reported a net loss of $241 million. This was largely driven by lowered market valuations along with expenses related to restructuring the company. Despite this, Galaxy successfully strengthened its financial standing, closing the year with $3 billion in equity capital, representing a 38% year-over-year increase. Furthermore, the cash and stablecoin reserves climbed to $2.6 billion, an impressive 168% rise compared to the previous year.
#What Were the Key Financial Metrics?
Even amidst challenging market conditions, Galaxy Digital reported a full-year adjusted EBITDA of $34 million alongside an adjusted gross profit of $426 million. These results reflected strong performance across various segments, including Trading, Lending, Investment Banking, Asset Management, and Blockchain Infrastructure. The assets on Galaxy’s platform reached $12 billion, bolstered by significant net inflows and enhanced institutional staking capabilities, notably after acquiring Alluvial Finance.
#What Is the Future Outlook for Galaxy Digital?
Galaxy Digital has been proactive in executing its infrastructure strategy. The company has made considerable advancements at the Helios Data Center campus, which includes securing an additional 830 MW of approved power capacity. This development positions the site to potentially generate over $1 billion in annual revenue once completed, facilitated through long-term agreements with CoreWeave.
In summary, while Galaxy Digital faces immediate challenges due to market fluctuations, its underlying financial health and strategic initiatives position it for potential recovery and growth ahead.