Galaxy Digital announced a net loss of around $482 million during the fourth quarter of 2025, according to its announcement of results. This was due to the weakening of digital assets and the increasing volatility of crypto markets.

The company stated that the period saw a significant market downturn. The total cryptocurrency market capitalization decreased by around 24% during the Q4 period, and this had a significant impact on institutional trading firms and crypto-focused financial companies.

Galaxy Digital’s shares declined about 17% after the announcement, which indicates investors’ worry about the company’s profitability in the near term.

Galaxy Digital identified market-driven valuation losses as the main factor behind the loss. The company’s management identified the loss as a result of price movements, not disruptions in its core business segments.

Galaxy Digital Reports Weaker Digital Assets Performance

The Digital Assets segment reported an adjusted gross profit of $51 million for the quarter. However, the segment also reported a negative adjusted EBITDA of $29 million.

Although Galaxy Digital reported a decline in its financials, the company’s Digital Assets business continued to operate as usual. However, one-time costs and valuation impacts offset its operating performance in the period reported.

Trading activity also declined significantly from the preceding period. Galaxy Digital reported a decline in trading volumes of 40% from the preceding period. 

The decline came after an unusually strong third quarter, which saw a $9 billion Bitcoin transaction, which had boosted client activity earlier in the year.

Also Read: Galaxy Digital Shares Drop as Q4 2025 Loss Hits $482 Million

The company has also provided details on several strategic milestones achieved in 2025. This includes corporate reorganization, its listing on Nasdaq, capital-raising efforts, and its ongoing expansion of data center operations.

Analysts Flag Divergence Across Crypto Equities

Crypto research firm 10x Research pointed out that the results show a broader trend shift among crypto equities. 10x Research added that stocks are no longer moving in tandem with crypto prices. Instead, stocks are showing divergent results based on balance sheets, execution, and earnings.

Galaxy Digital is also considered a bellwether for institutional exposure to cryptocurrency. The company operates across data centers, mining, staking, and financial services. Analysts look at its results as a gauge of sentiment for cryptocurrency-related equities.

According to 10x Research, Galaxy Digital generated little alpha, with a valuation premium that has been building up since around October 2025.

However, analysts have also questioned whether such a premium can be sustained following the recent sell-off, suggesting that it could be a sign of either a deeper downtrend or a mispricing of the market. Galaxy’s results are also a reflection of a broader shift in investor priorities.

Market participants are placing greater emphasis on profitability, balance sheet resilience, and execution. Exposure to rising crypto prices alone is no longer sufficient to support equity valuations.

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