Galaxy Digital reported a fourth-quarter loss of $482 million as its investment portfolio value declined by $449 million. The institutional crypto firm’s shares fell sharply following the earnings release, hitting their lowest price since July. Despite the loss, Galaxy maintained $2.6 billion in cash and stablecoins and highlighted the stable value of its $1.8 billion loan book.
Shares of Galaxy Digital fell approximately 16% after the company disclosed a $482 million fourth-quarter loss. The loss was driven by a $449 million, or 22%, decline in its investment portfolio’s value.
The firm’s total digital assets and investments fell to $1.7 billion by the end of December. Galaxy still held $2.6 billion in cash and stablecoins.
Its portfolio at quarter’s end included $557 million in Bitcoin, $124 million in Ethereum, and $220 million in other altcoins. The company also managed $617 million in venture and fund investments.
Earnings before taxes and interest showed a loss of $557 million for the quarter. This figure exceeded the $278 million loss anticipated by Wall Street analysts.
Trading volumes on Galaxy’s platform fell 62% quarter-over-quarter to $10.6 billion. The company noted this followed a $9 billion Bitcoin sale it facilitated in the prior quarter.
Galaxy said the value of its loan book remained stable at $1.8 billion. It described this as reflecting “resilience and sustained client demand, despite lower digital asset prices.”
The total value of assets on Galaxy’s platform dropped 26% to $11.4 billion. Assets under management decreased 27% to $6.4 billion.
According to analysts at investment bank Compass Point, “The data center business remains the key driver of GLXY’s investment thesis.” They stated the first phase of Galaxy’s Helios data center is on schedule for completion in the first half of this year.
