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

May 11, 2022 at 12:34 p.m. UTC

Updated May 11, 2022 at 2:38 p.m. UTC

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

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Eliza Gkritsi

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

Follow @egreechee on Twitter

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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.

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Eliza Gkritsi

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

Follow @egreechee on Twitter

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Eliza Gkritsi

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

Follow @egreechee on Twitter