Bitcoin Crash Hits Galaxy Digital Hard with $482M Q4 Loss

Galaxy Digital, led by Michael Novogratz, reported a steep fourth-quarter loss as slumping digital asset prices and unexpected costs dragged the company’s financials deep into the red.

Key Takeaways

• Galaxy Digital reported a $482 million net loss in Q4 2025, missing analyst expectations.
• Adjusted earnings per share came in at a loss of $1.08, worse than the forecasted $0.99 loss.
• The company cited declining crypto prices and $160 million in one-time expenses as key contributors to the downturn.
• Despite Q4 losses, Galaxy ended 2025 with $2.6 billion in cash and stablecoins and saw record growth in trading and asset management.

What Happened?

Galaxy Digital’s fourth-quarter earnings painted a challenging picture. The company’s net loss of $482 million was driven by a 22 percent drop in the value of digital assets and investments. Revenue plummeted to $10.2 billion for the quarter, falling far short of the $12 billion analysts had expected. The company’s stock dropped over 14 percent following the announcement, settling around $22.60.

Galaxy’s Financial Snapshot

The fourth quarter of 2025 proved turbulent for Galaxy Digital. The crypto market downturn, which saw bitcoin lose its position among the top 10 assets by market cap, was a major factor in the firm’s poor results.

• Q4 2025 Net Loss: $482 million
• Diluted EPS: $(1.08)
• Q4 Revenue: $10.2 billion (down 65% from Q3)
• Net Digital Assets & Investments: $1.68 billion, down 22% from Q3
• Adjusted EBITDA for Q4: $(518 million)

For the full year, Galaxy posted a net loss of $241 million, impacted by $160 million in one-time costs related to bitcoin mining infrastructure, a corporate reorganization, and accounting impacts from exchangeable notes.

Still, not all numbers were grim:

• Full-year adjusted gross profit stood at $426 million.
• Adjusted EBITDA for the year was $34 million.
• Cash and stablecoins at year-end totaled $2.6 billion, a 168% increase year-over-year.
• Total equity reached $3 billion, up 38% from the previous year.

Growth in Trading and Asset Management

Despite the losses, Galaxy made progress in key segments.

Global Markets posted record results earlier in the year. While Q4 saw a 40 percent decline in trading volumes from the previous quarter, Galaxy had previously executed one of the largest notional bitcoin transactions in history, valued at $9 billion. The loan book size remained stable at $1.8 billion.

In Asset Management, Galaxy ended 2025 with $12 billion in total assets on platform, including $6.4 billion in assets under management and $5 billion in assets under stake. The firm attracted $2 billion in net inflows for the year, representing 34 percent organic growth.

Galaxy also expanded its staking platform by acquiring Alluvial Finance and becoming the development partner for Liquid Collective, a top enterprise-grade liquid staking protocol.

Infrastructure Expansion

On the infrastructure side, Galaxy continues to invest heavily. At its Helios data center in Texas, the company received regulatory approval to increase power capacity to over 1.6 gigawatts, effectively doubling its capabilities. It has already executed 800 megawatts of long-term agreements with CoreWeave and expects to deliver 133 megawatts in the first half of 2026 under Phase I.

CoinLaw’s Takeaway

In my experience tracking crypto markets, companies like Galaxy Digital ride the wave of bitcoin’s volatility for better or worse. This quarter was one of the “worse.” That said, I found it notable that even with a $482 million hit, Galaxy has built a surprisingly solid foundation in cash, equity, and infrastructure. Their ability to still pull in $2 billion in net asset inflows shows investors haven’t lost confidence. The strategic pivot to expand staking, beef up data center power, and move trading to Nasdaq is clearly part of a long-term play. But if crypto prices continue to slide, Galaxy will need more than infrastructure to stay in the green.

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