Shares of Galaxy Digital fell more than 6% in pre-market trading after the crypto financial services firm reported a net loss of $482 million for the fourth quarter of 2025, weighing on investor sentiment despite strength in several core business lines.

The stock was trading around $24.70 as markets reacted to the results, even as broader crypto equities showed signs of recovery following a recent market-wide selloff.

What Drove the Loss

Galaxy attributed the sharp quarterly loss primarily to:

  • Declining cryptocurrency prices during the quarter

  • One-time costs of roughly $160 million, which significantly impacted earnings

On a full-year basis, the company reported a net loss of $241 million, or $0.61 per diluted share.

Strong Full-Year Performance Beneath the Headline Loss

Despite the Q4 setback, Galaxy posted $426 million in adjusted gross profit for the full year, highlighting resilience across its diversified business model.

The firm ended 2025 with:

  • $2.6 billion in cash and stablecoins

  • $12 billion in total assets

  • $2 billion in net inflows into its asset management platform

Galaxy also reported record trading volumes and profits, signaling continued institutional demand even amid volatile market conditions.

Infrastructure Expansion Continues

In its infrastructure business, Galaxy doubled its approved data center power capacity to more than 1.6 gigawatts, following new agreements and regulatory approvals in Texas. The expansion strengthens the firm’s positioning in digital infrastructure and data center services tied to the broader crypto ecosystem.

Market Impact and Investor Takeaway

The sharp pre-market selloff reflects near-term concern over earnings volatility, particularly as investors remain sensitive to losses following recent crypto market turbulence.

However, the reaction also appears to overlook Galaxy’s strong liquidity position, growing asset base, and expanding infrastructure footprint. While the Q4 loss raises questions about earnings stability during downturns, the company’s balance sheet strength and operating growth suggest it remains well-positioned for a recovery if crypto markets stabilize.

In the short term, Galaxy’s stock may remain under pressure as investors reassess risk, but longer-term sentiment will likely hinge on whether improving crypto prices can translate into more consistent profitability across trading and asset management.