Galaxy Digital sees $482 million Q4 loss as cash reserves grow 36%

TLDR

• Galaxy Digital posted a $482 million Q4 loss due to lower crypto prices and reduced trading.
• The company increased its cash and stablecoins by 36%, reaching $2.6 billion.
• Trading volume fell 40% compared to Q3, despite a $9 billion bitcoin trade.
• Galaxy raised $325 million in equity and $1.3 billion through senior notes.

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Galaxy Digital, the crypto-focused financial firm led by Mike Novogratz, reported a steep $482 million loss in the fourth quarter of 2025. The downturn followed a sharp drop in digital asset prices and reduced trading activity. Despite the loss, Galaxy grew its cash and stablecoin reserves by 36% compared to the previous quarter, strengthening its balance sheet through major fundraising efforts including equity and senior note offerings.

Q4 Loss Driven by Falling Crypto Prices and Lower Trading

Galaxy Digital, a financial services firm focused on digital assets, reported a $482 million net loss in the fourth quarter of 2025. This drop followed declining prices for major cryptocurrencies such as bitcoin and ether, along with reduced client trading activity.

“Digital asset trading volumes declined approximately 40% relative to the prior quarter,” the company said in its earnings release. The firm noted that weaker market activity followed record results in Q3, when it posted $505 million in profit.

Despite executing a $9 billion bitcoin trade during the quarter, overall volumes were not enough to maintain earlier momentum. The company closed the year with a total net loss of $241 million. This included roughly $160 million in one-time costs.

Company Strengthens Balance Sheet Through Fundraising

Although the firm posted a substantial loss, Galaxy improved its liquidity position. It raised $325 million through an equity offering and $1.3 billion via senior notes. As a result, the company ended the quarter with $2.6 billion in cash and stablecoins. This was up from $1.9 billion in the previous quarter, a 36% increase.

Galaxy stated that the additional liquidity would support ongoing operations and strategic expansion. Its growing cash pile positions the company to navigate ongoing market volatility or pursue future investments.

Share Price Drops While Analysts See Future Upside

Following the Q4 report, Galaxy’s stock (NASDAQ: GLXY) fell 13% in early trading on Tuesday, trading at $22.83 by 10:20 a.m. Eastern Time. The firm’s market capitalization was around $13.5 billion at that point.

However, some analysts remain optimistic. Benchmark recently projected nearly 80% upside for the company’s shares. Their outlook was partly driven by Galaxy’s Helios AI expansion. They described it as offering “embedded optionality” that separates Galaxy from other public companies in the AI infrastructure space.

Previous Quarter Set a High Benchmark

Galaxy’s fourth-quarter loss came after its strongest quarter ever in Q3. The firm then posted $505 million in profit, marking a year-over-year increase of over 1,500%. That performance was driven by a surge in asset prices and record trading activity.

But those market conditions did not persist into Q4. Bitcoin and other key digital assets saw price drops, while overall trading volume dropped substantially. Galaxy acknowledged that Q3 had been unusually strong, and Q4 results reflected a return to more moderate market conditions

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