Galaxy Digital (GLXY) stock soared 18% to $19.90 on Friday after the company approved a stock repurchase program of up to $200 million, giving it the authority to buy back Class A common stock over the next 12 months.
According to the company, share repurchases may be conducted in the open market, in private transactions, or through other methods, including trading plans under Rule 10b5-1. Galaxy added that it reserves the right to suspend or discontinue the program at any time depending on market conditions and other factors.
The announcement demonstrated management’s confidence that Galaxy stock is undervalued and that the company has excess capital to deploy. Stock buyback programs often support stock prices by reducing the number of shares outstanding, which can increase earnings per share and demonstrate balance sheet strength. In volatile markets, share buybacks can also reassure investors that management believes a company’s fundamentals are intact.
“We enter 2026 in good shape with our strong balance sheet and continued investment in Galaxy’s growth,” said Galaxy founder and CEO Mike Novogratz. “That foundation gives us the flexibility to return capital to shareholders if we believe our stock does not reflect the value of the business.”
The sharp rise reflects investors’ approval of that message.
Galaxy announced its fourth quarter results earlier this week, which initially weighed on the stock price. The company posted a net loss of $482 million in the quarter, and its stock price initially fell. Galaxy highlighted its liquidity position, saying that despite the quarterly loss, it generated a full-year adjusted gross profit of $426 million and ended the year with $2.6 billion in cash and stablecoins.
Other crypto stocks and major cryptocurrencies also rose in trading during the day, as did Bitcoin. BTC$70,522.62 Rise to $70,000 and Ethereum Ethereum$2,052.66 It has surpassed $2,000 in the last 24 hours. Coinbase (COIN) rose over 10% to $163. In more traditional markets, the Dow Jones Industrial Average topped 50,000 for the first time.
