Galaxy Digital Shares Surge 18% After $200 Million Buyback Announcement Signals Confidence

Shares of Galaxy Digital (GLXY) surged 18% to $19.90 on Friday after the crypto-focused financial services firm announced a new share repurchase program worth up to $200 million. The buyback authorization allows Galaxy to repurchase its Class A common stock over the next 12 months, a move widely interpreted by investors as a strong signal of confidence from management regarding the company’s valuation and financial position.

According to the company, the share repurchase program may be carried out through open market purchases, privately negotiated transactions, or other approved methods, including trading plans under Rule 10b5-1. Galaxy also emphasized that the program is flexible, noting it may suspend or discontinue the buybacks at any time based on market conditions, capital requirements, or other strategic considerations.

The announcement boosted investor sentiment, as share buyback programs are often viewed as a sign that a company believes its stock is undervalued. By reducing the number of shares outstanding, buybacks can help improve earnings per share and support stock prices, particularly during periods of market volatility. For crypto-related equities, which have faced sharp swings in recent years, such moves can provide reassurance about balance-sheet strength and long-term fundamentals.

Galaxy founder and CEO Mike Novogratz said the firm is entering 2026 “from a position of strength,” highlighting its robust balance sheet and continued investment in growth initiatives. He added that this financial flexibility allows Galaxy to return capital to shareholders when management believes the market is not fully recognizing the company’s underlying value.

The rally comes shortly after Galaxy reported fourth-quarter earnings that initially pressured the stock. The company posted a net loss of $482 million for the quarter, which led to a brief sell-off. However, Galaxy also reported $426 million in adjusted gross profit for the full year and disclosed it ended the year with $2.6 billion in cash and stablecoins, underscoring its strong liquidity position.

The positive momentum extended beyond Galaxy, as other crypto stocks and major cryptocurrencies also traded higher. Bitcoin climbed back toward $70,000, Ethereum moved above $2,000, and Coinbase shares jumped more than 10%. In broader markets, the Dow Jones Industrial Average crossed the 50,000 mark for the first time, adding to the bullish backdrop.