Key Highlights
- Galaxy Digital announced a $200 million share buyback, causing its stock to jump 19% during early trading.
- The stock has struggled over the past year, down 11%, trading below key averages, and is currently in a bearish trend.
- The firm recently opened an office in Abu Dhabi to expand into the Middle East.
Galaxy Digital (GLXY) shares soared roughly 19% in early trading hours after the asset management firm announced plans to buy back about $200 million of its Class A common stock.
According to an official release, the company’s board of directors approved the buyback program, which will allow it to repurchase its Class A common stock over the next 12 months. CEO Mike Novogratz said this move reflects the company’s strong financial position and its confidence in long-term growth.
The buyback plan
The buyback plan will follow all stock exchange rules and securities regulations, which will give the company enough flexibility in when and how many shares to purchase. The shares may be bought through open market transactions, privately negotiated deals, or under trading plans allowed by law, including Rule 10b5-1 plans.
“We are entering 2026 from a position of strength, with a strong balance sheet and continued investment in Galaxy’s growth. That foundation gives us the flexibility to return capital to shareholders when we believe our stock doesn’t reflect the value of the business,” the CEO said.
Galaxy noted that purchases on the Toronto Stock Exchange will need separate approval. The company also made it clear that the program does not obligate them to buy any specific number of shares, and the timing will depend on market conditions, stock prices, and legal requirements.
GLXY down 11% in a year
The company’s stock reacted positively to the announcement. Currently, the stock is trading for $20.12. Despite this, the stock still trades 31.4% below its 20-day average and 36.4% below its 100-day average, indicating a bearish trend.
The stock has lost about 11% in the past 12 months and trades closer to its 50-week low than its high. On the weekly time frame, the stock started to tank after hitting an all-time high of $45 on October 25.
Current price action displays a continuous break of structure to the downside, dropping over 51% from a monthly high of $34. In addition, the Relative Strength Index (RSI) is at 31, while the moving average is at 47.06. This suggests that the price is at an oversold level and selling is currently in control. Also, MACD is below its signal line, which further indicates a bearish market trend.
Expansion in the UAE
Meanwhile, Galaxy Digital has continued to expand its global footprint. In December, the company opened a new branch in Abu Dhabi to expand into the Middle East. The office is located in the Abu Dhabi Global Market (ADGM), which is the city’s international financial hub, and will help Galaxy reach investors and clients across three continents.
This operation is reportedly led by Managing Director Bouchra Darwazah, who will oversee the growth of the company in the region.
Broader context
Galaxy Digital repurchasing its own shares helps to reduce the number of shares in the market, which can make each share worth more. This helps the company by showing it has enough money to invest in itself and can support its growth. For investors, it is good news because it can increase the stock price and show the leaders’ trust in the company’s future.
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