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Finance

Slumping Galaxy Digital Announces Share Repurchase Plan

The stock had dropped 20% earlier this week, when the company reported a first-quarter loss.

By Eliza Gkritsi
AccessTimeIconMay 11, 2022 at 12:34 p.m. UTC
Updated May 11, 2023 at 5:39 p.m. UTC
Mike Novogratz, chief executive officer of Galaxy Investment Partners, speaks during a panel discussion on Secret Non-Fungible Token (NFTs) at the NFT.NYC Event in New York, U.S., on Tuesday, Nov. 2, 2021. NFT.NYC brings together over 500 speakers from the crypto, blockchain, and NFT communities for a three-day event of discussions and workshops.

Galaxy founder Mike Novogratz (Amir Hamja/Bloomberg via Getty Images)

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Galaxy Digital on Wednesday announced plans to buy back up to 10% of its shares outstanding, giving the stock an early pop that later reversed alongside another leg down in cryptocurrency prices.

  • The board of directors of the crypto-focused financial services firm approved a plan to bid on up to 10.6 million ordinary shares throughout the next 12 months, according to a press release. The firm will file a notice to the Toronto Stock Exchange, where its shares are listed.
  • Galaxy Digital may use the stock buyback program when it "believes that the current market price of its shares does not reflect their intrinsic value," it said.
  • The company stressed that Galaxy Digital Trading has experienced "no operational or execution-related disruptions," and its counterparty loan and yield portfolio has seen no credit defaults, degradations or liquidations.
  • Galaxy shares on the Toronto exchange have lost about a fifth of their value since Friday at market close, when they were trading at $13.53 Canadian dollars. On Monday, the company reported a loss of $111.7 million for the first quarter, compared with a $858.2 million profit for the first quarter of 2021.
  • Shares were up by as much a 5.5% on the buyback announcement, but have moved lower alongside the continuing major slump in crypto prices.

Read more: Galaxy Digital Records Q1 Loss of $111.7M Amid Fall in Crypto Prices

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Eliza Gkritsi
Eliza Gkritsi

Eliza Gkritsi is a CoinDesk contributor focused on the intersection of crypto and AI.

Follow @egreechee on Twitter

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