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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