Galaxy Digital Holdings Ltd. reported a net loss of $482 million for the fourth quarter of 2025 on Tuesday, February 3, 2026, as a sharp downturn in digital asset prices severely impacted its balance sheet. The loss, equivalent to $1.08 per share, significantly exceeded analyst expectations of a $282 million deficit.
Despite the quarterly setback, the Michael Novogratz-led firm highlighted a record adjusted gross profit of $505 million in its digital assets business for the full year, representing a 67% year-over-year increase.
The firm’s performance was caught in a “tale of two cities,” with robust operational growth in trading and lending overshadowed by the depreciation of its digital asset holdings. Galaxy’s stock price reacted sharply to the news, plunging 14.37% to close at $36.19. Trading volumes across the platform reportedly dropped by 40% quarter over quarter as market activity cooled significantly following an October peak.
CEO Mike Novogratz addressed investors during the earnings call, downplaying recent sell-offs by long-term holders as a reaction to “quantum uncertainty”. He argued that the broad investment thesis for Bitcoin as a digital store of value remains intact, despite the U.S. budget deficit reaching 6.5% and national debt hitting $40 trillion. Novogratz suggested that periods of maximum pessimism often precede market reversals, noting that Galaxy ended the year with $12 billion in assets under management.
The quarterly loss coincides with a broader “bloodbath” across the crypto industry in early 2026. Bitcoin recently crashed to nine-month lows below $78,000, while Ethereum and Solana recorded double-digit percentage drops. This volatility follows a similar pattern of security-related market anxiety seen in May 2025, when protocols like Curve Finance were forced to migrate domains following DNS hijacking attacks.
Galaxy Digital’s management expressed a 75-80% confidence level in the eventual passage of a U.S. bill to structure the crypto market. They believe such legislation will provide the regulatory clarity needed to stabilise institutional participation. For now, the firm maintains a strong liquidity position with $2.6 billion in cash and stablecoins to navigate the ongoing market turbulence.
