Core Viewpoint - Galaxy Digital has experienced significant losses, hitting an all-time low as investors reacted to disappointing earnings and a sharp decline in Bitcoin prices [1][5]. Financial Performance - Galaxy Digital reported a net loss of $241 million last year, a stark contrast to a net income of $346.7 million in 2024, primarily due to lower digital asset prices and one-off costs of approximately $160 million related to Bitcoin mining infrastructure and corporate reorganization [3][5]. - Revenues surged by 42% to $60.4 billion from $42.6 billion year-on-year, while operating expenses also increased by 42% to $61.6 billion compared to $43.4 billion in 2024 [5]. - In the fourth quarter, the net loss was $481.7 million, reversing a net income of $117.5 million in the same period in 2024, driven by depreciation in digital asset prices and a 24% decline in crypto market capitalization [5]. Market Context - The stock price of Galaxy Digital fell to a low of $16.67 during intra-day trading, ultimately closing down by 16.47% at $16.84 [2]. - The broader market sentiment was negative, with Bitcoin prices dropping by 50% from an all-time high of $126,000, influenced by news that the Treasury Department lacks authority to bail out cryptocurrencies [6]. - Pessimistic comments from investor Michael Burry suggested that Bitcoin could drop further to the $50,000 range, potentially leading to bankruptcies among Bitcoin mining firms [7].
Galaxy Digital (GLXY) Hits All-Time Low as Earnings Disappoint