Galaxy Digital has approved a $200 million share buyback.

Galaxy Digital Stock Rises 18%

Galaxy Digital shares rose by 18% to $19.90 following the company's approval of a $200 million stock buyback program over the next 12 months. These buybacks can be executed through open market or private transactions.

This move is seen as a sign that the management believes the stock is undervalued and also indicates that the company is holding excessive cash. Despite reporting a net loss of $482 million in the fourth quarter, the company reported an adjusted gross profit of $426 million for the year.

Additionally, Galaxy Digital emphasized that it has a total liquidity of $2.6 billion, including cash and stable cryptocurrencies. This situation demonstrates the strength of the company's balance sheet and makes it an attractive option for investors.