Galaxy Digital Q4 Loss Hits $482M on Falling Bitcoin Prices
What Drove Galaxy’s Fourth-Quarter Loss?
Galaxy Digital reported a net loss of $482 million in the fourth quarter of 2025, extending a difficult year shaped by falling digital asset prices and non-recurring expenses. For the full year, the firm posted a net loss of $241 million, according to its quarterly financial statements released Tuesday.
The company said fourth-quarter losses were “driven primarily by the depreciation of digital asset prices,” while full-year results reflected both lower prices and roughly $160 million in one-time costs. Bitcoin fell by around 20% during the fourth quarter, adding pressure across trading, holdings, and related activities tied to market values.
Galaxy operates across trading, asset management, and infrastructure-linked businesses, which means swings in crypto prices can feed directly into reported earnings. The fourth quarter captured one of the sharper pullbacks of the year, closing out a period when risk appetite across digital assets remained weak.
Investor Takeaway
How Management Framed the Market Downturn
On a shareholder update call Tuesday, Chief Executive Michael Novogratz pointed to broad declines across major tokens. “You have the crypto coins — Bitcoin, Ethereum, Solana, you name ‘em — have been in a bear market,” he said.
Novogratz argued that the current environment fits a familiar pattern for long-term market participants. “I do think that we’re in the lower end of the range [of Bitcoin price],” he said, adding that periods of stress have historically tested conviction across the sector.
He also framed the downturn as a phase that experienced crypto investors have seen before. “Anyone who’s been in crypto for more than five years realizes that part of the ethos of this whole industry is pain,” Novogratz said, noting that moments of extreme pessimism often force firms and investors to reassess exposure and readiness rather than exit outright.
While the comments offered context, they also highlighted how dependent sentiment remains on price recovery. Until digital asset markets stabilize, earnings volatility is likely to remain a defining feature for firms with balance sheets tied to token valuations.
What the Balance Sheet Shows Despite the Losses
Despite posting net losses, Galaxy reported an adjusted gross profit of $426 million for the full year of 2025. The firm ended the year with $2.6 billion in cash and stablecoins, providing a buffer against further market weakness.
Galaxy also said total platform assets stood at $12 billion at year-end, with $2 billion in net inflows into its asset management business. Those inflows suggest that, even during a down market, some institutional and high-net-worth clients continued allocating capital through Galaxy-managed products.
The contrast between accounting losses and cash levels highlights the uneven effects of price declines. Depreciation of digital assets can weigh heavily on reported results, even as fee-generating businesses and custody balances continue to bring in capital.
Investor Takeaway
Why Infrastructure Plans Still Matter
Beyond trading and asset management, Galaxy has been pushing into infrastructure tied to artificial intelligence and high-performance computing. The firm said it is accelerating development of an AI data center in Texas, a project announced last August.
In January, Galaxy received approval from the Electric Reliability Council of Texas for an additional 830 megawatts of power capacity, lifting total approved capacity at the site to more than 1.6 gigawatts. The project reflects a longer-term bet on demand for energy-intensive computing, independent of short-term crypto prices.
For investors, the data center effort introduces a revenue path less directly tied to token markets. Still, capital intensity and execution risk remain factors, particularly while core crypto businesses face pressure from lower prices.
How Markets Reacted and What Peers Reported
Elsewhere in the sector, results were mixed. SoFi Technologies reported fourth-quarter revenue of $1 billion, supported in part by crypto trading activity on its platform. Tokenization firm Securitize Holdings said revenue rose more than 840% through September 2025 as it moved toward an initial public offering.
The divergence highlights how exposure models matter. Firms with broader consumer or enterprise-facing revenue streams have been better insulated from price drops, while companies with larger balance-sheet exposure to digital assets continue to feel sharper earnings pressure.
