Galaxy Digital has announced a share repurchase program worth up to $200 million, specifically targeting its Class A common stock. This measure, authorized by the board on Friday, seeks to mitigate the negative impact that crypto-linked stocks have suffered recently due to the broader market downturn and Bitcoin’s volatility.
The buyback plan, which will be valid for twelve months, allows the company to acquire its own securities in the open market or through private negotiations. According to CEO Mike Novogratz, the company enters 2026 from a position of financial strength, providing the necessary flexibility to return capital to its investors.
Repurchase strategy against the undervaluation of the institutional market
Although the program does not obligate the firm to acquire a specific amount of shares, the initiative reflects a clear intention to stabilize the asset’s price. In fact, following the announcement, Galaxy’s shares experienced a 17% rebound, effectively recovering some of the ground lost during the last month.
On the other hand, the company must comply with strict regulations on both Nasdaq and the Toronto Stock Exchange to execute these transactions. In this sense, the firm’s blockchain and custody platforms remain fundamental pillars, although management believes that the current market value does not reflect the business’s true potential.
How does the Bitcoin pullback affect sector-specific companies?
Galaxy’s performance is not an isolated case, as the sector has faced a deep correction due to Bitcoin falling from its January highs. Consequently, crypto-linked stocks from companies like Coinbase and MicroStrategy have recorded declines between 20% and 36% recently, sparking concerns among institutional and retail investors globally.
Likewise, the firm reported significant net losses at the end of 2025, mainly attributed to the decline in digital asset prices. However, by implementing this buyback program, management sends a confidence signal to the market, attempting to decouple the share value from retail panic trends.
Ultimately, the success of this strategy will depend on the stabilization of the global crypto-asset market in the coming months. Therefore, analysts will closely watch if other mining and financial services companies follow Galaxy’s steps, seeking to protect shareholder equity by effectively reducing the available supply.
Looking ahead, the resilience of Galaxy’s data center and staking infrastructure will be crucial to sustaining growth. Thus, the timely execution of these repurchases could mark the difference between a solid recovery and a prolonged stagnation phase, especially if institutional volatility persists across the Nasdaq index.
