Galaxy Digital Under Investigation Amid Significant Losses and Stock Drop
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy GLXY?
Source: PRnewswire
- Severe Financial Losses: Galaxy Digital reported a net loss of $482 million in Q4 2025, missing analyst expectations primarily due to the depreciation of digital asset prices, highlighting the company's vulnerability amid market volatility.
- Significant Stock Drop: Following the earnings report, Galaxy's stock price fell by $4.46, or 16.87%, closing at $21.98 on February 3, 2026, indicating investor concerns about the company's future outlook.
- Legal Investigation Launched: Pomerantz LLP is investigating whether Galaxy and its executives engaged in securities fraud or other unlawful business practices, which could lead to further legal risks and financial losses, impacting the company's reputation.
- Investor Action Call: Pomerantz LLP is urging Galaxy investors to contact their attorneys to join the class action, reflecting market concerns over corporate governance and transparency, potentially triggering a broader investor trust crisis.
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Analyst Views on GLXY
Wall Street analysts forecast GLXY stock price to rise
12 Analyst Rating
11 Buy
1 Hold
0 Sell
Strong Buy
Current: 20.150
Low
24.00
Averages
43.89
High
60.00
Current: 20.150
Low
24.00
Averages
43.89
High
60.00
About GLXY
Galaxy Digital Inc. is engaged in the business of digital assets and data center infrastructure, delivering solutions that accelerate progress in finance and artificial intelligence (AI). The Company's digital assets platform offers institutional access to trading, advisory, asset management, staking, self-custody, and tokenization technology. In addition, it develops and operates data center infrastructure to power AI and high-performance computing workloads. The Company's segments include Digital Assets, Data Centers, and Treasury and Corporate. Its Digital Assets operating business segment provides new products and capabilities such as staking, margin-based financing and active exchange-traded funds. The Data Centers segment comprises the Helios infrastructure assets. Its Data Centers segment develops and operates High Performance Computing (HPC) infrastructure to meet the growing demand for large-scale, power-ready facilities in the AI/HPC industry.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Significant Stock Drop: Following the earnings report, Galaxy's stock price fell by $4.46, or 16.87%, closing at $21.98 on February 3, 2026, indicating investor concerns about the company's future outlook.
- Legal Investigation Launched: Pomerantz LLP is investigating whether Galaxy and its executives engaged in securities fraud or other unlawful business practices, which could lead to further legal risks and financial losses, impacting the company's reputation.
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- Inflation Data Impact: The U.S. January Consumer Price Index rose by 2.4% year-over-year, below the expected 2.5%, marking the smallest increase in seven months, which may prompt the Fed to continue cutting rates, thus providing support for the stock market and alleviating concerns over rate hikes.
- Strong Software Stock Performance: Software stocks like Crowdstrike Holdings and ServiceNow rose over 4% and 3%, respectively, lifting the broader market and indicating a rebound in investor confidence in tech stocks, particularly amid rapid advancements in AI technology.
- Metal Stocks Retreat: Reports of the Trump administration's plans to narrow tariffs on steel and aluminum products led to declines in metal companies, with Century Aluminum falling over 7%, reflecting the negative impact of policy changes on the sector.
See More
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- Inflation Data Impact: The US January CPI rose 2.4% year-over-year, below the expected 2.5%, which may prompt the Fed to continue cutting rates, with the 10-year T-note yield falling to 4.05%, providing support for the market.
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See More
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- Weak Economic Data: Initial jobless claims in the U.S. fell by 5,000 to 227,000, below the expected 223,000, while January existing home sales dropped 8.4% month-over-month to 3.91 million, marking a 16-month low, which reflects signs of economic slowdown that could impact market sentiment.
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- Severe Financial Losses: Galaxy Digital reported a net loss of $482 million in Q4 2025, missing analyst expectations primarily due to the depreciation of digital asset prices, highlighting the company's vulnerability amid market volatility.
- Significant Stock Drop: Following the earnings report, Galaxy's stock price fell by $4.46, or 16.87%, closing at $21.98 on February 3, 2026, indicating investor concerns about the company's future outlook.
- Legal Investigation Launched: Pomerantz LLP is investigating whether Galaxy and its executives engaged in securities fraud or other unlawful business practices, which could lead to further legal risks and financial losses, impacting the company's reputation.
- Investor Action Call: Pomerantz LLP is urging Galaxy investors to contact their attorneys to join the class action, reflecting market concerns over corporate governance and transparency, potentially triggering a broader investor trust crisis.
See More
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- Interest Rate Expectations Shift: Following the robust employment report, the market's expectation for a Fed rate cut next month dropped from 23% to 6%, with the 10-year T-note yield rising by 3 basis points to 4.17%, reflecting a cautious outlook on future monetary policy.
- Mixed Market Performance: The S&P 500 closed unchanged, the Nasdaq 100 rose by 0.29%, while the Dow Jones Industrial Average fell by 0.13%, highlighting a contrast between strong tech stock performance and weakness in software stocks.
- Optimistic Earnings Outlook: Over 78% of the 335 S&P 500 companies that reported earnings exceeded expectations, with Q4 earnings growth projected at 8.4%, indicating that sustained corporate profitability will support long-term stock market gains.
See More
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- Market Volatility: With Bitcoin falling below $70,000 for the first time, Coinbase's stock has declined by 33.12% over the past month, which not only affects Armstrong's wealth but also undermines market confidence in the company, indicating potential pressure on its upcoming financial report.
- Regulatory Controversy: Armstrong faced criticism from Treasury Secretary Scott Bessent for opposing the proposed Clarity Act, who argues that recent market volatility highlights the urgent need for clear regulatory frameworks, potentially impacting Coinbase's future operational strategies.
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