Novogratz’s Galaxy Digital posts $482 million loss as cash pile swells

Mike Novogratz's Galaxy Digital suffered nearly half a billion-dollar loss last quarter as the cryptocurrency market slumped, the company said Tuesday.

Galaxy logged a net loss of $482 million during the fourth quarter of last year. That brought the company's total annual net loss to $241 million "due to lower digital asset prices and approximately $160 million of one-time costs during the year," the firm said.

Galaxy's stock (NASDAQ: GLXY) was down 13% in early trading on Tuesday, changing hands at $22.83 as of 10:20 a.m. ET. The company's market cap sits around $13.5 billion.

Galaxy's dismal fourth quarter, amid plummeting prices for key digital assets like bitcoin and ether, stands in stark contrast to the previous fiscal period. During the third quarter of 2025, Galaxy reported its best quarter ever, with profit skyrocketing over 1,500% to $505 million.

"Digital asset trading volumes declined approximately 40% relative to the prior quarter, reflecting softer client trading activity following a record Q3," Galaxy said in Tuesday's earnings release. That decline came even though Galaxy executed a $9 billion bitcoin trade.

Despite the company's drop in revenue and earnings, Galaxy managed to grow its liquidity by adding more cash and stablecoins to its balance sheet. Galaxy said it had $2.6 billion in cash and stablecoins at the end of the quarter, a 36% increase from the previous quarter when the company held $1.9 billion.

The company said it had strengthened its balance sheet by raising $325 million from an equity raise and $1.3 billion from an offering of senior notes.

Novogratz serves as Galaxy's founder and CEO.

Last week, Benchmark analysts saw nearly 80% upside to GLXY shares due in part to its Helios AI expansion. "At this stage, we believe the company’s incremental capacity should be understood not as a realized contributor to its valuation, but as a form of embedded optionality that meaningfully differentiates it from other public companies with AI data center exposure," the analysts wrote at the time.