Published: February 2026
Galaxy Digital Holdings Ltd. (TSX: GLXY) reported a $482 million net loss for the fourth quarter of 2025, primarily driven by significant depreciation in digital asset prices and unrealized mark-to-market losses across its trading and principal investment portfolio. The headline figure reversed the $241 million full-year net loss reported earlier, reflecting the sharp crypto market downturn in late 2025 that saw Bitcoin fall from its cycle peak near $126,000 to lows around $73,000–$78,000 in early 2026.
Despite the substantial quarterly loss, CEO Mike Novogratz struck an optimistic tone during the earnings call, emphasizing Galaxy’s strong balance sheet, $12 billion+ in platform assets under management, and his belief that the current cycle remains intact with Bitcoin still “very early” in its adoption curve. This article provides a complete breakdown of the Q4 results, the key drivers behind the loss, year-over-year comparisons, strategic positioning, and what investors and traders should watch in 2026.
Q4 2025 Financial Highlights at a Glance
| Metric | Q4 2025 | Q4 2024 | Full Year 2025 | Notes |
|---|---|---|---|---|
| Net Income / (Loss) | ($482 million) | Positive (exact not restated here) | ($241 million) | Largely unrealized digital asset depreciation |
| Adjusted EBITDA | ($518 million) | — | — | Reflects mark-to-market losses |
| Platform Assets Under Management | $12 billion+ | Growth from prior year | Significant increase | Galaxy Asset Management & Infrastructure Solutions |
| Trading & Principal Investments | Heavy losses | — | — | Bitcoin & altcoin price decline |
| Bitcoin Price Context | ~73k–78k range | Higher average | Peak $126k → correction | Direct impact on holdings |
What Drove the $482 Million Q4 Loss?
The majority of the quarterly net loss stemmed from:
- Unrealized / realized losses on digital asset holdings
Galaxy maintains a sizable principal trading book and investment portfolio. The ~35–40% Bitcoin correction from late-2025 highs directly reduced the value of BTC and altcoin positions. - Mark-to-market accounting
Under GAAP/IFRS, digital assets are carried at fair value → sharp price declines flow straight through to net income. - Lower trading revenue
Reduced market volatility and liquidity in Q4 compared to earlier quarters hurt spreads and volumes in Galaxy’s trading desk. - Operating expenses remained elevated
Continued investment in infrastructure (GalaxyOne, mining ops, asset management) kept costs high even as revenue contracted.
Adjusted EBITDA of –$518 million reflects the non-cash nature of much of the loss, but still underscores the severity of the crypto price drawdown’s impact on Galaxy’s financials.
Mike Novogratz’s Outlook: “Still Very Early in the Cycle”
Despite the large headline loss, CEO Mike Novogratz maintained a constructive long-term view during the earnings call:
- “We are still very early in the Bitcoin adoption cycle.”
- Emphasized institutional inflows (ETFs, corporate treasuries, nation-state interest) as structural tailwinds.
- Highlighted Galaxy’s $12B+ platform AUM growth and diversified revenue streams (asset management, infrastructure, trading) as resilience factors.
- Reiterated belief in Bitcoin reaching six-figure levels in the current cycle, citing halving dynamics and macro liquidity trends.
Novogratz’s commentary helped stabilize sentiment somewhat after the initial sell-off, with many analysts viewing the current weakness as a buying opportunity for long-term believers in the digital asset thesis.
Galaxy Digital vs Peers – How It Stacks Up
| Company | Q4 / Recent Net Income | Digital Asset Exposure | Key Differentiator |
|---|---|---|---|
| Galaxy Digital | ($482M Q4 loss) | High (principal book + investments) | Diversified: trading, asset mgmt, mining, infrastructure |
| Coinbase (COIN) | Strong profit (subscription & services) | Medium (custody + trading) | Retail + institutional exchange dominance |
| Marathon Digital (MARA) | Variable (mining margins) | Very high (BTC mining) | Pure-play Bitcoin mining exposure |
| Riot Platforms (RIOT) | Similar to MARA | Very high | Mining + power infrastructure |
Galaxy’s diversified model (trading desk, asset management, infrastructure) provides more revenue levers than pure miners, but also exposes it more directly to market price swings than exchange-focused peers like Coinbase.
Trading & Positioning Considerations on Tapbit
- Sign Up on Tapbit (0% maker fees)
- Deposit USDT or JPY via bank transfer / P2P
- Cycle accumulation: DCA BTC/USDT on pullbacks to $74k–$78k exhaustion zones
- Institutional proxy: Long BTC/USDT perpetuals (20–50x leverage, isolated) as a leveraged play on Galaxy’s Bitcoin thesis
- Risk-off hedge: Long XAU/USDT perpetuals if macro fears intensify
- Risk control: Max 1–2% account risk per trade; trailing stops below recent lows
FAQs – Galaxy Digital Q4 2025 Loss & Outlook
Why did Galaxy Digital report a $482 million loss in Q4 2025?
The loss was primarily driven by unrealized and realized depreciation in digital asset holdings (Bitcoin & altcoins) during the late-2025 market correction, compounded by mark-to-market accounting.
Is Mike Novogratz still bullish on Bitcoin after the loss?
Yes. Novogratz reiterated that Bitcoin adoption remains “very early,” highlighted institutional inflows and halving-cycle dynamics, and emphasized Galaxy’s diversified revenue streams as resilience factors.
Should investors buy Galaxy Digital stock after the Q4 loss?
Galaxy offers leveraged exposure to Bitcoin price recovery. Current levels may appeal to high-conviction cycle believers, but volatility remains extreme. Consider small positions with strict risk controls.
What should traders watch next from Galaxy?
Upcoming updates on platform AUM growth, H1 2026 trading desk performance, any strategic moves in mining/infrastructure, and Bitcoin price behavior relative to $76k–$80k cost basis zones.
Conclusion & 2026 Outlook for Galaxy Digital
Galaxy Digital’s $482 million Q4 2025 net loss reflects the brutal impact of the late-2025 crypto correction on firms with large principal trading and investment books. While the headline number is eye-catching, the company grew platform assets under management to over $12 billion, maintained diversified revenue streams, and saw CEO Mike Novogratz reiterate strong long-term conviction in Bitcoin’s adoption cycle.
For traders and investors, Galaxy remains a high-beta proxy to Bitcoin price recovery: significant upside if BTC reclaims $100k+, but equally sharp downside risk if the correction deepens. Tapbit provides efficient execution for Bitcoin exposure and related assets: 0% maker fees on BTC/USDT spot & perpetuals, deep liquidity, up to 125x leverage, staking/yield options, and instant fiat deposits. Key catalysts to watch: Bitcoin price action around $76k–$80k, ETF flow stabilization, February jobs data (Feb 7), Fed speakers, and Galaxy’s next quarterly update — the current fear phase has historically preceded the strongest recoveries of the cycle.
Trade Bitcoin volatility & institutional crypto exposure on Tapbit:
Disclaimer: Cryptocurrency and equity trading involve significant risk of loss. Prices are highly volatile and can change rapidly. Corporate earnings and CEO commentary do not guarantee future performance. This article is for informational purposes only and does not constitute investment advice. Always conduct your own research (DYOR) and never invest more than you can afford to lose completely.
