TLDR
- Galaxy Digital’s Q4 2025 net loss reached $482 million with full-year losses at $241 million as crypto prices tumbled.
- The company’s stock fell approximately 15% on Tuesday, dropping from $26.44 to $24.10 on elevated volume.
- Bitcoin’s 20% Q4 decline combined with $160 million in one-time expenses drove the losses.
- Galaxy maintains $2.6 billion in cash and stablecoins with total platform assets of $12 billion.
- Wall Street analysts hold a “Buy” consensus with an average $46.42 price target despite quarterly losses.
Galaxy Digital revealed tough numbers Tuesday. The crypto investment firm recorded a $482 million net loss for Q4 2025.
Full-year losses totaled $241 million. The company blamed declining digital asset values and roughly $160 million in one-time expenses.
Bitcoin took a beating during the quarter. The world’s largest cryptocurrency fell about 20% in Q4 2025.
That drop hammered Galaxy’s portfolio. Digital asset depreciation drove the bulk of quarterly losses.
CEO Michael Novogratz didn’t mince words on the shareholder call. “Bitcoin, Ethereum, Solana, you name ’em — have been in a bear market,” he stated.
He struck a veteran’s tone about market cycles. “We’ve been here before,” Novogratz said, adding that longtime crypto participants recognize these painful periods often precede better times.
Shares Tumble on Earnings Release
Investors sold first and asked questions later. Galaxy stock gapped down at Tuesday’s open.
The previous close was $26.44. Shares opened at $25.23 and dropped to an intraday low of $24.10.
Nearly 2 million shares changed hands. That volume spike reflected heightened selling pressure.
The session ended with shares down roughly 15%. Some data showed declines approaching 18.6%.
Galaxy’s market capitalization now sits around $8.41 billion. The stock trades at a PE ratio of 17.93.
Technical indicators show weakness. The 50-day moving average is $26.99, while the 200-day average stands at $29.50.
Strong Balance Sheet Despite Losses
Galaxy isn’t scrambling for cash. The firm closed 2025 with $2.6 billion in cash and stablecoins.
Total platform assets hit $12 billion. The asset management division attracted $2 billion in net inflows throughout the year.
Adjusted gross profit reached $426 million for 2025. The company’s debt-to-equity ratio registers 0.36.
Both current and quick ratios sit at 1.35. These metrics suggest healthy short-term liquidity.
Galaxy actually topped earnings estimates. Analysts expected a $1.24 per share loss. The actual result was $1.08 per share.
Analyst sentiment stays positive. Thirteen firms rate the stock “Buy” or “Strong Buy,” with only two “Hold” ratings.
The consensus price target is $46.42. That implies substantial upside from current trading levels.
BTIG maintains a “buy” rating with a $50 target. Citizens JMP projects even higher at $60.
Morgan Stanley initiated with “overweight” and a $42 target in November. Rosenblatt and Canaccord Genuity also maintain buy ratings.
Goldman Sachs takes a cautious view with a “neutral” rating and $27 price target.
Big money keeps accumulating shares. Vanguard grew its Galaxy stake by 27.5% during Q4, now owning 20.6 million shares valued at $462 million.
Company director Douglas R. Deason purchased 10,000 shares in November. He paid $29.59 per share for the position.
Galaxy secured regulatory approval in January for 830 additional megawatts of power capacity at its Texas AI data center. Total approved capacity now tops 1.6 gigawatts.
The firm finished its Delaware reorganization and Nasdaq listing process. This corporate restructuring eliminates certain legal uncertainties.
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