TLDR
- Galaxy Digital posts $482M loss as crypto slump hits valuations hard
- Crypto crash wipes profits as Galaxy Digital swings to Q4 loss
- Galaxy Digital sinks into loss after steep crypto market drawdown
- Unrealized crypto losses push Galaxy Digital into $482M deficit
- Weak trading and crypto slump drag Galaxy Digital into quarterly loss
Galaxy Digital (GLXY) stock moved sharply lower as the company reported a steep quarterly loss linked to falling crypto prices. The share price dropped 20.39% and traded at $21.05 during the session. The decline signaled strong pressure across the digital asset sector and shaped a difficult close to the year.
Quarterly Results Reflect Declining Digital Asset Prices
Galaxy Digital released its fourth-quarter report and confirmed a sharp reversal from the prior quarter’s profit. The company posted a net loss of $482 million as digital asset values fell throughout the period. Furthermore, adjusted earnings also turned negative as unrealized losses weighed on overall performance.
The firm stated that total equity reached $3.0 billion at year-end after recent capital raises. Cash and stablecoin holdings increased as Galaxy strengthened liquidity for future expansion. However, net digital assets and investments contracted as market depreciation reduced valuations.
Galaxy completed its transition into a Delaware corporation and began Nasdaq trading during the year. The company also expanded capacity in blockchain infrastructure as data center commitments advanced. Additionally, the firm disclosed long-term agreements that increased total approved power capacity above 1.6 gigawatts.
Digital Assets Segment Records Lower Trading Activity
The Digital Assets segment generated $51 million in adjusted gross profit during the quarter. Activity slowed as trading volumes dropped 40% from the previous quarter after a record period. Yet the loan book showed resilience with only a slight increase in average balances.
Global Markets reported softer client engagement as onchain activity and broader liquidity thinned. The business still executed advisory work, including mandates in asset acquisitions and decentralized finance consolidation. Total trading counterparties increased, showing continued market participation despite weaker conditions.
Full-year results reflected stronger momentum, as the segment produced record adjusted gross profit of $505 million. Growth came from trading, lending, asset management and infrastructure services across the platform. Still, quarterly weakness underscored sensitivity to market movements and asset price volatility.
Treasury and Corporate Segment Posts Heavy Unrealized Losses
The Treasury and Corporate segment reported a quarterly adjusted gross loss of $454 million. The decline reflected the impact of lower crypto prices on digital asset positions held on the balance sheet. Adjusted EBITDA for the segment dropped sharply into negative territory.
Unrealized losses across strategic investments contributed to the segment’s performance pressure. Market depreciation reduced valuations and created a significant swing from the prior quarter’s gains. The absence of offsetting investment activity widened the quarterly deficit.
Full-year results showed a negative adjusted gross profit of $86 million for the segment. The outcome aligned with persistent valuation swings across crypto markets throughout the year. Capital raises and liquidity levels supported the company’s year-end financial position.
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