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.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.