Galaxy Digital reported a fourth-quarter net loss of $482 million following a 22% decline in the value of its investment portfolios. The loss, which surpassed analyst expectations of $278 million, led to a 16% drop in its share price to around $22. The firm cited a $449 million decline in digital asset and investment values, with Bitcoin and Ethereum price drops contributing to a 26% reduction in total platform assets to $11.4 billion.
Galaxy Digital posted a $482 million net loss for the fourth quarter. This result followed a sharp 22% decline in its investment portfolio value.
The company’s shares fell about 16% to trade near $22 according to financial data. This decline marked the stock’s lowest point since July.
The value of digital assets and investments dropped by $449 million in the quarter ending December 31. Portfolio value decreased to $1.7 billion, though the firm held $2.6 billion in cash and stablecoins.
Its investment portfolio contained $557 million in Bitcoin and $124 million in Ethereum. It also held $220 million in other altcoins.
The loss before interest and taxes was $557 million, as stated in the company’s announcement. Analysts had projected a $278 million loss.
Trading volumes on its platform dropped 62% to $10.6 billion for the quarter. This followed an exceptional $9 billion Bitcoin sale in the prior period.
Assets under management on its platform fell 26% to $11.4 billion. Bitcoin and Ethereum dropped 23% and 28%, respectively, in the quarter according to market data.
