NEW YORK, February 6, 2026 — Galaxy Digital Holdings Ltd. (GLXY) saw its stock price surge 18% to $19.90 on Friday, fueled by the company’s announcement of a share repurchase program of up to $200 million. This move signals a strong vote of confidence in the company’s future prospects and a belief that its shares are currently undervalued.
Buyback Bonanza: Galaxy Digital Bets on Itself
The company is authorized to buy back its Class A common stock over the next 12 months, potentially boosting shareholder value.
- Galaxy Digital approved a $200 million share repurchase program.
- The buyback aims to return capital to shareholders and signal undervaluation.
- Despite a recent quarterly loss, the company maintains a strong cash position.
- Bitcoin surpassed $70,000 and Ethereum broke $2,000 in the same trading session.
Share repurchase programs, often seen as a positive sign, allow companies to reduce the number of outstanding shares, which can increase earnings per share and demonstrate financial strength. In the often-volatile cryptocurrency market, such a move can also reassure investors that management remains confident in the company’s underlying fundamentals.
“We are entering 2026 from a position of strength, with a strong balance sheet and continued investment in Galaxy’s growth,” stated Mike Novogratz, founder and CEO of Galaxy Digital. “That foundation gives us the flexibility to return capital to shareholders when we believe our stock doesn’t reflect the value of the business.”
The market reacted favorably to this message, driving up the stock price significantly.
The announcement comes after Galaxy Digital reported fourth-quarter earnings earlier this week, which initially caused a dip in the stock price. The company posted a net loss of $482 million for the quarter. However, Galaxy emphasized that it generated $426 million in adjusted gross profit for the full year and ended the year with a robust $2.6 billion in cash and stablecoins, highlighting its solid liquidity.
What does a share repurchase program tell investors? It suggests that the company believes its stock is undervalued and has sufficient financial resources to invest in its own shares, potentially increasing their value.
The broader cryptocurrency market also experienced gains on Friday, with Bitcoin climbing back above $70,000 and Ethereum surpassing $2,000 over the past 24 hours. Coinbase (COIN) also saw a substantial increase, climbing over 10% to $163. Meanwhile, in traditional markets, the Dow Jones Industrial Average broke the 50,000 mark for the first time.
