Galaxy Digital reports a sharp drop in its stock price after incurring a $482 million loss

Galaxy Digitals theo chân Strategy Bitcoin ?

Shares of Galaxy Digital Holdings (TSX: GLXY | OTCQX: BRPHF) fell sharply in pre-opening and early trading on February 3, 2026, after the company reported a net loss of $482 million in the fourth quarter of 2025 — its largest quarterly loss since the 2022 bear market.

The stock plummeted between -18% and -22% in the first hour of trading in Toronto , wiping out much of the gains accumulated during the cryptocurrency bull run in late 2025.

The losses were primarily due to a decline in the unrealized market value of Galaxy's proprietary digital assets (Bitcoin, Ethereum, and several altcoins) during the sharp correction from December 2025 to January 2026, combined with increased operating costs and one-time restructuring fees.

Why are stocks being sold off ?

Stock markets often strongly reflect volatility. For Galaxy, the Q4 results further reinforced concerns that earnings remain highly cyclical , with limited resilience during downturns. The sell-off suggests investors are demanding clearer evidence of recurring, counter-cyclical revenue – such as asset management fees or infrastructure services – rather than earnings driven by the market's beta coefficient.

Despite reporting losses, Galaxy has consistently emphasized prudent liquidity management and capital reserves. Losses resulting from market value adjustments do not necessarily weaken solvency, but they can limit strategic flexibility, including acquisitions, hiring, or new product launches.

General trends in the industry

Galaxy's business results are consistent with the familiar pattern of cryptocurrency financial services companies during a recession. Revenue diversification is a key factor – but reliance on digital asset prices remains the primary driver. As the industry matures, companies with more stable income from service fees and lower balance sheet risk may command higher valuations.

For Galaxy, the challenge lies in implementing a strategy that aligns with the cycle. Expanding asset management services to institutions, data services, and infrastructure could reduce volatility in returns over time. Demonstrating discipline in principal investment and clearer profit thresholds could also help rebuild confidence in the stock market.

Our review

The $482 million loss in the fourth quarter is a concerning and attention-grabbing figure – but it's largely due to stable market valuations and is tied to a temporary market correction rather than a structural failure. Galaxy's core businesses (custodial, institutional services, asset management) continue to grow, and the launch of the Alpha Fund remains on track.

For investors, this is a typical moment in the cryptocurrency stock market when high-beta stocks like GLXY fluctuate wildly with BTC price and market sentiment. The company isn't struggling – they're weathering the storm with a strong balance sheet, no short-term debt pressure, and a clear path toward profitability once the market stabilizes.

Disclaimer: The information presented in this article is the author's personal opinion in the field of cryptocurrency. This is not financial or investment advice. All investment decisions should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in this article do not represent the official stance of the platform. We recommend that readers conduct their own research and consult with experts before making any investment decisions.

Compiled and analyzed by HCCVenture

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