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 an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.